Bitcoin Technical Analysis: DEAD CAT BOUNCE OR BOTTOM?
In my prior update, I mentioned if bitcoin broke above $3,600, we could see a temporary bull run. At the time of writing this, the bulls continue to run. Bitcoin is currently trading around $4,000 on Coinbase.
Looking at the daily chart, we can see price has broken above the 21 day EMA. If the daily candle can close above this level, it’ll be a very healthy sign of strength.
Daily volume has risen fairly significantly to just above $8 Billion. We have not seen buy volume like this since May.
We can’t rule out a dead cat bounce and/or temporary short squeeze. Longs have dropped off the board by nearly 32%. Shorts remain fairly stable overall. This suggests market makers may be running a short squeeze to try and liquidate shorts before the down trend continues. However, this could spark an unintentional, more sustainable bull run if enough buyers believe the bottom is in and FOMO takes over.
In today’s video analysis I discuss, where price may go from here, traps to avoid and so much more. I hope you find it helpful.
Video Analysis:
If you don’t see the above video, navigate to TIMM (https://mentormarket.io/workin/) or Steemit in order to watch.
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!
Workin
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Fully agree... watching and waiting is the best strategy now... I would not recommend even daily-trading.... soooo risky now
I hear you @toofasteddie. Small scalps here and there have been great, but I'm not entering into anything heavy until there's more clarity.
fib pull from low to 4414 (cbase) seems to have been honored. 18th we hit resistance at 3784 (.5 fib $3772), 19th we bounced off $3928 (.618 $3923), today we reached $4175 (.786 fib $4140). i would expect to find some resistance at 4400ish, since fib pull from $6540 the .382 is $4433 if anyone pays attention to confluence.
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