From a technical analysis point of view, we stopped right at the previous red support I drew a while back. In addition, previous pullback was also around this area. I think we will chop around this area before continuing. Trend is down so I say we go lower, but I will be on my toes in the case we reverse.
Do you guys prefer I do short updates from time to time or a market summary once a day? Let me know what you think
Market broke out of the short term consolidation, red line. Bitcoin is retesting the highs of the previous rally. A breakout above the highs and also the descending trendline is pretty bullish. I've highlighted the first target at 2420 or 395 if we do breakout. Realistically, since its so close to the round number 400, we probably will hit that.
Short-term trend is up. A 10% reversal off of a double bottom is a good indicator. Looking at the 4 hour chart, we are likely to retest previous lows and downward trendline. In addition, the double bottom that was formed also points to this area; a lot of confluence. Hence I think it is likely we are going to retest it at some point. Now, that does not mean the market won't have some volatility. The nature of bounces is that it is choppy and hard to predict. A bounce's price targets, we can use fib-retracement or previous resistance to predict, but not time duration or price action.
More market consolidation. On the hourly timeframe, we are bouncing between the two trendlines. The buying pressure is getting slightly higher at this juncture since we have made higher lows. However, the big downtrend suggests that this could be a bear flag. I've made a post about trading flags before if you are interested. In addition, we have retested this ascending trendline multiple times, 6 total.
From yesterday's post, we were at the trendline. Currently, price is below trendline, but still at support from the horizontal line. If price rallies above the trendline again, it is definitely bullish. If we break below support, it is bearish. This suggests that we are at a critical point. In other words, wherever the price moves will determine the new direction.