Is BTC about to break further down?
BTC 1h chart update
What we are currently looking at is a potential bottom scenario forming - we had a big sell off event in those last candles before pivot points started showing bullish structure with setting higher-highs and higher-lows, breaking into space between 50 and 200 EMA. The big sell off at the end is usually when bears make a final push, but the asset is bought up and because of that the demand out-weights supply, resulting in price trend change.
So far we are in 3 accumulation channels:
- white zones, limiting growth and fall - this is the widest channel, which will be last confirmation of trend direction when broken (and the strongest as well)
- orange lines, showing a rising channel for short-term, which is on the brink of being broken downwards, but still showing support holding so far
- 50 and 200 EMA, which are closing up together, potentially getting ready to crossover, if we can get price action moves above 200 EMA
On the last one, I have to say that price is currently staying lower than 50 EMA, so saying that we are waiting on bullish crossover is still quite far fetched. We do still see pivots forming higher-lows, which is good. On the other hand, we don't see and new highs in last 48 hours and this is not a good sign for bullish continuation. Same picture is showing on RSI and MACD - price is consolidating closer together and if we had Bollinger bands on chart as well, they would be closing up. This is another signal that price is forming to make a break out!
The question is in which direction we will go?
US market - NASDAQ is showing some strength and growing in last 48 hours, so if it continues in this direction we will also see more growth on BTC and ETH. But before we can make a new high on BTC and breaking through 32k, we are still very much in bear trend. So opening longs here is a risky business.
By the current channel structure, I would still go short for a day or two and keep my eye on stock market. If it indeed manages to break out of current down pressure, then we might see an awesome bullish run yet.
What we are currently looking at is a potential bottom scenario forming - we had a big sell off event in those last candles before pivot points started showing bullish structure with setting higher-highs and higher-lows, breaking into space between 50 and 200 EMA. The big sell off at the end is usually when bears make a final push, but the asset is bought up and because of that the demand out-weights supply, resulting in price trend change.
So far we are in 3 accumulation channels:
- white zones, limiting growth and fall - this is the widest channel, which will be last confirmation of trend direction when broken (and the strongest as well)
- orange lines, showing a rising channel for short-term, which is on the brink of being broken downwards, but still showing support holding so far
- 50 and 200 EMA, which are closing up together, potentially getting ready to crossover, if we can get price action moves above 200 EMA
On the last one, I have to say that price is currently staying lower than 50 EMA, so saying that we are waiting on bullish crossover is still quite far fetched. We do still see pivots forming higher-lows, which is good. On the other hand, we don't see and new highs in last 48 hours and this is not a good sign for bullish continuation. Same picture is showing on RSI and MACD - price is consolidating closer together and if we had Bollinger bands on chart as well, they would be closing up. This is another signal that price is forming to make a break out!
The question is in which direction we will go?
US market - NASDAQ is showing some strength and growing in last 48 hours, so if it continues in this direction we will also see more growth on BTC and ETH. But before we can make a new high on BTC and breaking through 32k, we are still very much in bear trend. So opening longs here is a risky business.
By the current channel structure, I would still go short for a day or two and keep my eye on stock market. If it indeed manages to break out of current down pressure, then we might see an awesome bullish run yet.
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