cUrrently Bitcoin remains moving sideways but its very confusing after all this chop chop chop that is basically getting traders murder triggering stop loss and liquidating others using too much leverage, there was been no real swing opportunity to trade, at best for those daily mercenaries scalping has been the best strategy so far.
lOoking at the weekly chart we can see how this last high at around $10,429 coincides almost perfectly with the two previous tops at $13880 and $19666 based on the BTCUSD Bitstamp chart meaning Bitcoin is still not out of the descending triangle as I thought a few weeks ago, this is my first time on a market there for my first bear market, I got to say it hasnt hit me that hard and I have learn to survive during this times, investing and trading.
After a nice run from $3800 with over 100% gains its understandable that the price wants to take a breath, probably this the reason why Bitcoin has been consolidating on this range within the two ping lines on the chart above, quite a large range for scalping since after it hit $10k volatility has temporary abandon the asset, I start to see traders on twitter getting exhausted too waiting for confirmation of some sort of trend definition but nothing has happen yet.
This is the forth week since Bitcoin started to test the $9k mark, its been a very boring month for Bitcoin traders, meanwhile DEFI tokens over Ethereum were poping left and right making nice gains, my most recent Celsius Network with over 100% gains in the past month.
If we take out the candle sticks then it can be seen how the 20 EMA (blue line) is bearly starting to croll and may cross the 50 EMA in a few weeks if this trend continues
But in the short term I have been trading and investing on crypto, shorting the asset right now could end up on a knife catching competition and rekt your trade, we would need to wait the following confirmations in the case of a bearish scenario.
- Break the ascending triangle structure (yellow lines)
- Break the floor of the channel (pink lines), possible target $8600 to $8500
At that point this two EMA would cross and if you would like to take a chance trading with leverage then most likely a short position would be the way to go but in the meantime as long as Bitcoin respect this channels it has been traveling and this two specific EMA dont cross then I have to remain bullish on Bitcoin, every time Bitcoin is riding the 20EMA its a bullish sign, besides this technical aspects only the fact that its still within the descending triangle since the $19k top on 2018 makes me thing that Bitcoin may end up breaking this uptrend and go bearish in the short term with targets
- First Stop: $8500 – $8000
- Second Stop: $7500 – $6400
This are channels I have drawn on my chart based on previous support/resistance areas
If we look at the daily chart it is more pronounce that the trend may change in the short term although all this retest of $9k without actually dropping makes me thing that there are buyers just buying the dip and the sell pressure is not enough for now but a slow death can be the result of it where we can see the price go down very slowly
This are my thoughts on Bitcoin, follow by a video I made about this matter, I hope this is useful for you in some way
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