This week all eyes will be on $BTC as its approaching a critical trend line. The significance of this, will either see Bitcoin bounce to potential $19500 area or further down fall back to $18800. I think the latter for a couple of reasons. Let's zoom in and take a look:
A couple of things to note:
- Based off 4 HR Timeframe (Swing Trading mentality)
- Major Support & Resistance Zones highlighted by purple
- Short Term Support and Resistant lines highlighted blue lines
- Overall trend of Bitcoin is down (Trend line is dotted diagonal)
- Couple of rejections off of the down trend line signifying bears are still in control
- Below 200 EMA (Solid navy blue line) overall
- Upper Bollinger Band has been previously broken near trend line
For Bitcoin to make a major move, we need to see first a candle closed above the 50 EMA (light blue line) successfully, followed by a break above 19500 area and a push past the 200 EMA. Not saying this can't happen, but putting things in perspective as well as the overall sentiment of the crypto market, it's not looking like a pump anytime soon.
Does this mean all hope is loss?
Not at all. If you are DCAing (Dollar Cost Averaging), you are in perfect shape with $BTC down over 60% from ATH (all time highs) this is a fantastic price to buy and accumulate. And if you are actively trading, shorts should be in order.
