BITCOIN: Bearish Signs Prevailing

aezakmi (58)in #cryptocurrency • 4 years ago

BTC/USD Weekly Chart

Bitcoin is currently finding resistance at the 100 MA, which aligns with the 0.5 Fibonacci retracement of the 10600-3700 descending movement. Despite the strong price increase in the last period, the volume is decreasing big-time, suggesting that the bulls are losing their power. Depending on how this weekly candle closes, we have the prior weekly candle which can be seen as a shooting star and a potential swing high. There is indeed the decreasing bearish MACD-Histogram, but we could end up having a rejection at the signal line. Personally, I'm favoring the bears this time and believe that the lower line of the triangle, together with the 200 weekly MA and the 0.236 retracement (5555$) are a realistic target for the upcoming period.

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BTC/USD Daily Chart

On the daily we broke out of the ascending channel, with the price seeing a rejection around the 55 daily EMA (blue). The trading volume is also in opposition to the price action, as on the weekly and we have a decreasing MACD-Histogram. At the time of writing, BTC is just below the 21 EMA (yellow), with high chances for a spectacular price drop.