Bitcoin (BTC) stall at critical point - Whats next for Big B?
This analysis is meant for my own educational purposes and for making discussion around the current situation. I am by no means a professional trader, and I advice against making trades based on this analysis.
Bitcoin made a pretty strong bounce off from 6000 USD with an all time high volume on the daily chart to back it up. There seems to be a strong bullish sentiment forming based upon the clear bullish divergence on the MACD (Red trend line). However the coin has stalled at the very important 50 day EMA (pink) which has proven to act as a major resistance on several occasions. Trading volume has been declining even after binance reopened and there is indecision in the market.
So where do we go from here?
It is hard to answer at the time, as it is just as likely to go both ways.
If bitcoin breaks through the 50 day EMA and we see some rising trading volume, we will likely see it surging to the next major resistance which would be the 100 day EMA (orange) and the point of the most recent top (around 9500 USD). However, if the bulls don't start initiating and the volume keeps declining, we could see a symmetrical fall downwards to test the support at 6000 USD. If this is the case, keep an eye on the trading volume whenever a new bottom seems to be forming. A double bottom at 6000 USD would be a strong sign of a trend reversal and if backed up by volume, we could see a massive bounce towards the 100 day EMA.
I do not recommend any trades until we see stronger signals of which direction we are heading.
What do you think of the current situation? Have the bulls already found the bottom or are the bears still in control?
Bitcoin made a pretty strong bounce off from 6000 USD with an all time high volume on the daily chart to back it up. There seems to be a strong bullish sentiment forming based upon the clear bullish divergence on the MACD (Red trend line). However the coin has stalled at the very important 50 day EMA (pink) which has proven to act as a major resistance on several occasions. Trading volume has been declining even after binance reopened and there is indecision in the market.
So where do we go from here?
It is hard to answer at the time, as it is just as likely to go both ways.
If bitcoin breaks through the 50 day EMA and we see some rising trading volume, we will likely see it surging to the next major resistance which would be the 100 day EMA (orange) and the point of the most recent top (around 9500 USD). However, if the bulls don't start initiating and the volume keeps declining, we could see a symmetrical fall downwards to test the support at 6000 USD. If this is the case, keep an eye on the trading volume whenever a new bottom seems to be forming. A double bottom at 6000 USD would be a strong sign of a trend reversal and if backed up by volume, we could see a massive bounce towards the 100 day EMA.
I do not recommend any trades until we see stronger signals of which direction we are heading.
What do you think of the current situation? Have the bulls already found the bottom or are the bears still in control?
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