Bitcoin Momentum has Stalled after the Break of ATH.
Bitcoin has broke into a new all time high few weeks ago and since it has stalled quite a bit. Usually when price breaks into a new all time highs, it leads to extended gains immediately or gets rejected.
When we are speaking about coin large as Bitcoin, we would expect this reaction to be even stronger.
But so far the price has stalled as the last two week candles do suggest. Stalling after breaking into a new all time high is not a good sign at all.
The current week price action continues to go with the stalling trend. Also Bitcoin is currently in a very strong resistance area.
Both of these factors are suggesting a volatile move to occur any time soon.
When we switch to the daily time frame we can see that the momentum has stalled here also. The bullish momentum has decreased quite a bit and seems like we could have a potential turnaround.
A crucial resistance is located at $63000, which has broken by $260 three days ago, however it seems that this break was insufficient.
The price continues to find weak support 6 days in a row on the daily 20 EMA. This is not good at all because in a strong uptrend you need the price to robustly bounce from this level and continue moving in the overall trend, strong uptrend. A full candlestick break below 20 EMA will attract sellers.
The trend of higher lows is located at 20 EMA, at $60500.
A clear break of $58000 can lead to a pretty aggressive selloff, potentially reaching $50000 per BTC.
RSI fails to break above 60 twice, meaning it has failed to bring bullish momentum back into the daily time frame.
MACD continues to ride a corrective wave, nothing special.
Zooming up a bit more on the 4H time frame, we can see another sign of momentum being build up. EMA’s are pretty close to each other, which usually leads to a sharper move in the end.
Another thing that worries me is Ethereum.
Ethereum seems from a first look very overbought, desperate for a correction.
The move from $2800 to current levels haven’t seen any proper correction at all. MACD is extremely overbought, RSI shows bearish divergence and the break of all time high failed to deliver so far.
Sometimes, when I am unsure about future Bitcoin price action, Ethereum is the one can give a lot of useful information.
All in all, my outlook on Bitcoin is pretty bearish and I rather have my money in stable coins as it seems to be a better risk to reward play at the current time.
When we are speaking about coin large as Bitcoin, we would expect this reaction to be even stronger.
But so far the price has stalled as the last two week candles do suggest. Stalling after breaking into a new all time high is not a good sign at all.
The current week price action continues to go with the stalling trend. Also Bitcoin is currently in a very strong resistance area.
Both of these factors are suggesting a volatile move to occur any time soon.
When we switch to the daily time frame we can see that the momentum has stalled here also. The bullish momentum has decreased quite a bit and seems like we could have a potential turnaround.
A crucial resistance is located at $63000, which has broken by $260 three days ago, however it seems that this break was insufficient.
The price continues to find weak support 6 days in a row on the daily 20 EMA. This is not good at all because in a strong uptrend you need the price to robustly bounce from this level and continue moving in the overall trend, strong uptrend. A full candlestick break below 20 EMA will attract sellers.
The trend of higher lows is located at 20 EMA, at $60500.
A clear break of $58000 can lead to a pretty aggressive selloff, potentially reaching $50000 per BTC.
RSI fails to break above 60 twice, meaning it has failed to bring bullish momentum back into the daily time frame.
MACD continues to ride a corrective wave, nothing special.
Zooming up a bit more on the 4H time frame, we can see another sign of momentum being build up. EMA’s are pretty close to each other, which usually leads to a sharper move in the end.
Another thing that worries me is Ethereum.
Ethereum seems from a first look very overbought, desperate for a correction.
The move from $2800 to current levels haven’t seen any proper correction at all. MACD is extremely overbought, RSI shows bearish divergence and the break of all time high failed to deliver so far.
Sometimes, when I am unsure about future Bitcoin price action, Ethereum is the one can give a lot of useful information.
All in all, my outlook on Bitcoin is pretty bearish and I rather have my money in stable coins as it seems to be a better risk to reward play at the current time.
Comment:
A clear break of $67000 will invalid this idea. Last week weekly candle closed bullish so I rebought BTC at $62000.
