This is simply an analysis, not an invitation to go short or long, please do your own research
Recently we have seen bitcoin drop a tiny amount after the coronavirus fears - We can see on the chart that it dropped along with SPY. It's not just Bitcoin that has dropped since, altcoins have too. This to me indicates that investors are looking for a safe haven and that bitcoin isn't it just yet - it could be because of high volatility or maybe it could be the fact that they don't trust that it will have a value in the future. Gold has obviously been known as a safe haven for a long time.
Another reason for this downwards push could the halving - Traders want to get Bitcoin at a low price so they are trying to drive it down before the halving.
I think we can forget the cup and handle for now as we have a H&S + Fundamentals indicating that we will see a fall, maybe it could be a small fall before it regains strength, but it is too early to tell. It has failed at top resistance and seems to be weak on the current support, the next candle should be able to tell us if it's going to break it or not. This will clearly tell us a bit more about where Bitcoin is headed. The upwards trendline was broken a couple of days ago as well.
Here is the H&S Pattern and a bear signal on Ichimoku
I'd love to hear your opinion about this.
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Recently we have seen bitcoin drop a tiny amount after the coronavirus fears - We can see on the chart that it dropped along with SPY. It's not just Bitcoin that has dropped since, altcoins have too. This to me indicates that investors are looking for a safe haven and that bitcoin isn't it just yet - it could be because of high volatility or maybe it could be the fact that they don't trust that it will have a value in the future. Gold has obviously been known as a safe haven for a long time.
Another reason for this downwards push could the halving - Traders want to get Bitcoin at a low price so they are trying to drive it down before the halving.
I think we can forget the cup and handle for now as we have a H&S + Fundamentals indicating that we will see a fall, maybe it could be a small fall before it regains strength, but it is too early to tell. It has failed at top resistance and seems to be weak on the current support, the next candle should be able to tell us if it's going to break it or not. This will clearly tell us a bit more about where Bitcoin is headed. The upwards trendline was broken a couple of days ago as well.
Here is the H&S Pattern and a bear signal on Ichimoku
I'd love to hear your opinion about this.
Follow me for more related content
Trade closed: target reached:
I would close here. Trend reversal could happen soon now.