Bitcoin - BTCUSD what happened and what is next?
Hi Everyone,
BTC has seen a strong bearish candle and here are some technical analysis for you to understand what happened from a technical perspective.
There is a trend line supporting the market to go up since January 2023 - However, the market has been failing to go above the weekly bearish order block created in June 2022, around 30,500.
If we look at the trend as it was going up since January 2023, we can see that it has left some imbalances as swing highs were broken and the market was getting closer and closer to the weekly order block around 30,500, which could indicate that the market would get back to those levels to close the imbalances.
Also, as the market goes up, it left some unmitigated Order Blocks along the way, which is another indication that it could get back down to fill those orders that were pushing the market higher. The price needs to keep balanced and gaps closed to continue pushing higher, otherwise it will lack power at some point.
Adding all these confluences up, once the trend line was broken, there was nothing else holding the bullish structure, which has then tanked in such way.
If you go down to the 1H timeframe, you can see that there was no power at all to keep supporting price in an uptrend. The huge dump followed that lack of support, where traders decided to either close their buying positions or open new sell positions to ride the bearish candle.
I expect price to continue going down towards at least 20,500 level. However, first stop, it needs to break below 24,500 - so short term we should expect price getting back to 24,500.
BTC has seen a strong bearish candle and here are some technical analysis for you to understand what happened from a technical perspective.
There is a trend line supporting the market to go up since January 2023 - However, the market has been failing to go above the weekly bearish order block created in June 2022, around 30,500.
If we look at the trend as it was going up since January 2023, we can see that it has left some imbalances as swing highs were broken and the market was getting closer and closer to the weekly order block around 30,500, which could indicate that the market would get back to those levels to close the imbalances.
Also, as the market goes up, it left some unmitigated Order Blocks along the way, which is another indication that it could get back down to fill those orders that were pushing the market higher. The price needs to keep balanced and gaps closed to continue pushing higher, otherwise it will lack power at some point.
Adding all these confluences up, once the trend line was broken, there was nothing else holding the bullish structure, which has then tanked in such way.
If you go down to the 1H timeframe, you can see that there was no power at all to keep supporting price in an uptrend. The huge dump followed that lack of support, where traders decided to either close their buying positions or open new sell positions to ride the bearish candle.
I expect price to continue going down towards at least 20,500 level. However, first stop, it needs to break below 24,500 - so short term we should expect price getting back to 24,500.
Comment:
We continue with a bearish sentiment for Bitcoin.
Trade active:
We just had a retest below the trend line, which has bounced off nicely.
This can be an additional confirmation that the market will continue to go down in the short term.
This can be an additional confirmation that the market will continue to go down in the short term.
Comment:
Market continues to show lack of power to move up. My bias remain bearish for BTCUSD
L.G