Recently I posted an idea about bitcoin breaking out and running to much higher prices and shortly after, the number 1 cryptocurrency asset attempted to take the first step to doing so. However, there was no follow-through in price action and now Bitcoin finds itself in a very vulnerable position. It is still very bullish in my opinion and I do believe more price action to the upside is coming, but right now Bitcoin has painted several bearish signals on its chart that must be discussed.
One of them being a bearish reversal candle on the daily chart. More specifically referred to as a bearish engulfing candle. They form at areas of resistance and are often validation of weakness in price action such as bearish divergences for one example. There are other bearish reversal candles as well.. this is just one of them.
We also have major weakness in relative strength as we have now confirmed triple bearish divergence on the daily RSI. There is also a strong case for bearish divergence on the weekly timeframe as well. For now it is expected for us to remain in the trend but with all of this major weakness in the market, follow through sell pressure could come at any moment. We are now heading into the weekend, so the price action over the next few days will be unreliable. This could be a good thing as this may give unsure traders time to adjust or hedge their positions.
If and when that breakdown occurs, there are levels of interest that we will discuss. But for now as we head into the weekend, we must simply wait until institutional markets open back up on Sunday evening.
One of them being a bearish reversal candle on the daily chart. More specifically referred to as a bearish engulfing candle. They form at areas of resistance and are often validation of weakness in price action such as bearish divergences for one example. There are other bearish reversal candles as well.. this is just one of them.
We also have major weakness in relative strength as we have now confirmed triple bearish divergence on the daily RSI. There is also a strong case for bearish divergence on the weekly timeframe as well. For now it is expected for us to remain in the trend but with all of this major weakness in the market, follow through sell pressure could come at any moment. We are now heading into the weekend, so the price action over the next few days will be unreliable. This could be a good thing as this may give unsure traders time to adjust or hedge their positions.
If and when that breakdown occurs, there are levels of interest that we will discuss. But for now as we head into the weekend, we must simply wait until institutional markets open back up on Sunday evening.
