Will Bitcoin's consolidation end soon? and to the downside?
We can clearly see on the chart that bitcoin has been struggling to find any direction for quite sometime now. Oscillating between the highs at around 40k and the lows around 31k. The fact that we have 2 roughly equal highs and 2 roughly equal lows (highlighted in circles) confirms that we are now in a trading range just around the equilibrium price roughly at 35600 dollars. This suggests a continuation of the trading range and thus we can utilize a simple BUY THE LOWS, SELL THE HIGHS sideways strategy.
HOWEVER, I really don't like the fact that we are still beneath the 200EMA on the 4hours timeframe! Prices formed a third low around support levels 31k and rallied to reach the equilibrium price by which we should've moved our long order stoploss to breakeven, But the failure to reach the resistance 40k again, and the fact that we are still beneath the 200EMA suggests to me that we might extend losses on bitcoin beneath the support 31k which should be confirmed by breaking below 28k and with either a price or time filter. So to sum up, DON'T BUY BITCOIN, SIT ON YOUR HANDS, WATCH, AND WAIT FOR SHORTS !!
HOWEVER, I really don't like the fact that we are still beneath the 200EMA on the 4hours timeframe! Prices formed a third low around support levels 31k and rallied to reach the equilibrium price by which we should've moved our long order stoploss to breakeven, But the failure to reach the resistance 40k again, and the fact that we are still beneath the 200EMA suggests to me that we might extend losses on bitcoin beneath the support 31k which should be confirmed by breaking below 28k and with either a price or time filter. So to sum up, DON'T BUY BITCOIN, SIT ON YOUR HANDS, WATCH, AND WAIT FOR SHORTS !!
Order cancelled:
Price didn't break below 28k level. Trade cancelled