Recently, Bitcoin broke above the narrow range we showed in previous articles. Subsequently, it gained bullish momentum, rising to $21 456. Interestingly, the cryptocurrency paused its climb slightly below the resistance at $21 473. If Bitcoin breaks above this level, it will further bolster the bullish case in the short term. However, the inability to break above the resistance might suggest a faltering bullish momentum. Therefore, we will pay close attention to volume levels. To support a bullish case, we want to see a pick-up in volume accompanying a (further) price increase. Contrarily, to support a bearish case, we want to see low volume near high price tags (and then, ideally, a pick-up in volume accompanying a price drop).
Overall, the price of Bitcoin is rising too quickly (and too high), which is more reminiscent of the FOMO (fear of missing out) behavior among market participants rather than a genuine primary trend reversal. Due to that, we are very cautious about this recent move and think it is still too premature to call the market bottom. We expect the U.S. earnings season to reveal more underlying economic problems and enforce the notion of the market progressing deeper into recession. As the cryptocurrency market stays highly correlated to the stock market, we expect this to weigh on it down the road. Accordingly, we maintain our price targets for Bitcoin at $15 000 and $13 000 (though, in the short-term, we do not rule out continuation higher).
Illustration 1.01
Illustration 1.01 shows the daily chart of BTCUSD. Bullish volume accompanying the price rise can be seen on a decline, which is worrisome.
Technical analysis
Daily time frame = Bullish
Weekly time frame = Slightly bullish
Illustration 1.02
Illustration 1.02 displays the hourly chart of BTCUSD. Volume can be seen dropping near high price tags, casting a sign of weakness. However, low liquidity may allow for volatile movement to either side.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Overall, the price of Bitcoin is rising too quickly (and too high), which is more reminiscent of the FOMO (fear of missing out) behavior among market participants rather than a genuine primary trend reversal. Due to that, we are very cautious about this recent move and think it is still too premature to call the market bottom. We expect the U.S. earnings season to reveal more underlying economic problems and enforce the notion of the market progressing deeper into recession. As the cryptocurrency market stays highly correlated to the stock market, we expect this to weigh on it down the road. Accordingly, we maintain our price targets for Bitcoin at $15 000 and $13 000 (though, in the short-term, we do not rule out continuation higher).
Illustration 1.01
Illustration 1.01 shows the daily chart of BTCUSD. Bullish volume accompanying the price rise can be seen on a decline, which is worrisome.
Technical analysis
Daily time frame = Bullish
Weekly time frame = Slightly bullish
Illustration 1.02
Illustration 1.02 displays the hourly chart of BTCUSD. Volume can be seen dropping near high price tags, casting a sign of weakness. However, low liquidity may allow for volatile movement to either side.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
액티브 트레이드
BTCUSD spiked above the resistance. However, then it dropped back below it in the next minute. This flashes a warning sign. 
관련 발행물
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.