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Quick glance: In this analysis, we discuss the importance of using price-action in trading. Since its decline in May, Bitcoin has been pretty tightly range-bound. The long term resistance level is just above the $41k mark, and the long term support level is at $31,000.
In our previous analysis on BTCUSD, we had correctly predicted the fake-out in Bitcoin on the 4 hour timeframe. Trendline breakouts are usually considered reliable in trading. However, the lack of volume was pointing to a breakout that was not coherent with the overall market conditions.
Death Cross and the hype around it:
A Death cross happens when the shorter term moving average, say 50 MA, crosses down the longer term 200-day MA. It is usually seen as a major bearish trend. Prior to the ‘Death cross’ that happened on 19th June, there were several analyses suggesting Bitcoin crashing following the formation.
However, the daily price candle suggests that the price remained stable, and the volume candle remained extremely small. Therefore, it is not always prudent to solely rely on any particular technical indicator and enter a trade.
As of now, the two major levels are $31,000 on the lower end and $41k on the higher side. Breaking out on either end with decisive volume would indicate the momentum prevailing in the markets.
Today’s Trend analysis
Bitcoin is under selling pressure lately. The breakout on the 4hour timeframe was given by a pretty small volume candle.
Price volatility remained moderate at approximately 4.64%, with the day's range between $35255.00 — $35258.70.
Price at the time of publishing: $33672.32
BTC's market cap: $630.24 Billion
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Note: Above analysis would hold true if we do not encounter a sudden jump in trade volume .
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Keep supporting:)
-Mudrex
Quick glance: In this analysis, we discuss the importance of using price-action in trading. Since its decline in May, Bitcoin has been pretty tightly range-bound. The long term resistance level is just above the $41k mark, and the long term support level is at $31,000.
In our previous analysis on BTCUSD, we had correctly predicted the fake-out in Bitcoin on the 4 hour timeframe. Trendline breakouts are usually considered reliable in trading. However, the lack of volume was pointing to a breakout that was not coherent with the overall market conditions.
Death Cross and the hype around it:
A Death cross happens when the shorter term moving average, say 50 MA, crosses down the longer term 200-day MA. It is usually seen as a major bearish trend. Prior to the ‘Death cross’ that happened on 19th June, there were several analyses suggesting Bitcoin crashing following the formation.
However, the daily price candle suggests that the price remained stable, and the volume candle remained extremely small. Therefore, it is not always prudent to solely rely on any particular technical indicator and enter a trade.
As of now, the two major levels are $31,000 on the lower end and $41k on the higher side. Breaking out on either end with decisive volume would indicate the momentum prevailing in the markets.
Today’s Trend analysis
Bitcoin is under selling pressure lately. The breakout on the 4hour timeframe was given by a pretty small volume candle.
Price volatility remained moderate at approximately 4.64%, with the day's range between $35255.00 — $35258.70.
Price at the time of publishing: $33672.32
BTC's market cap: $630.24 Billion
----------------------------------------------------------------------------------------
Note: Above analysis would hold true if we do not encounter a sudden jump in trade volume .
----------------------------------------------------------------------------------------
Keep supporting:)
-Mudrex
