[Detailed Analysis on BTC/USD]: Price Action & My Opinion
What do you think? Is it the turning point for Bitcoin Price Action or Bitcoin's Flight to the Moon is halfway? Comment down.
Here is what my analysis says:
1. Rising Wedge Pattern on Daily:
Starting from the start July 21, 2021, Bitcoin started formation of rising wedge - First one smaller timeframe (4h):
![[Detailed BTC Analysis] Sentiments changes but Technical don't!](https://static.tradingview.com/static/images/svg/idea-image-placeholder.svg)
and then on Daily Timeframe shown in the chart.
It broke down from the wedge and the bulls entered the market at $44000 that drove the BTC price from $44k to $49500! Yes, that's massive but if we look on the daily timeframe, it seems like a retest of upward sloping support of the rising wedge (which was broken on August 16, 2021) is being retested, hence making it now a resistance.
Looking at zoomed out view of BTC Daily Chart, we can point that there is a strong resistance zone for Bitcoin from $49500 to $51000 which BTC was trying to break but failed.
Some other technical, when drawn on Weekly timeframe, are predicting that Bitcoin can either take U-turn from $49k level or if this strong level gets broken, then the ONLY hurdle between Bitcoin's new All Time High is $58000 level. We can see a huge sell-off there as well.
2. Decreasing Volume:
Decreasing Volume is one of the factor that is showing that BTC's current trend is not very strong for Bitcoin to go straight to the moon. It needs a massive correction, accumulation and then the bull flight.
3. Indicators:
Renown Indicators like RSI and MACD are also pointing that bears have started stepping into the market.
RSI is showing Bearish Divergence on Daily Timeframe while MACD is doing bearish crossover.
4. My Opinion:
In my opinion, Bitcoin will not get volatile immediately but will range for a while. Bull will try to exhaust the resistance to move the price up while bears are waiting for the greed to make its ATH.
Currently, on hourly timeframe Bitcoin has just broken Head and Shoulders Pattern and technically, it should test $47800 level. Next strong support level is $42900 which is Weekly 21EMA + Global Support. Till then, we can scalp but I will not be in favor of any days longs trades.
After this week's close, we could see some volatility in the market. Get ready!
Stay safe and happy trading.
Comment down your thoughts.
Muneeb.
#SyedMuneebAli
Here is what my analysis says:
1. Rising Wedge Pattern on Daily:
Starting from the start July 21, 2021, Bitcoin started formation of rising wedge - First one smaller timeframe (4h):
![[Detailed BTC Analysis] Sentiments changes but Technical don't!](https://s3.tradingview.com/s/SyOPtKid_big.png)
and then on Daily Timeframe shown in the chart.
It broke down from the wedge and the bulls entered the market at $44000 that drove the BTC price from $44k to $49500! Yes, that's massive but if we look on the daily timeframe, it seems like a retest of upward sloping support of the rising wedge (which was broken on August 16, 2021) is being retested, hence making it now a resistance.
Looking at zoomed out view of BTC Daily Chart, we can point that there is a strong resistance zone for Bitcoin from $49500 to $51000 which BTC was trying to break but failed.
Some other technical, when drawn on Weekly timeframe, are predicting that Bitcoin can either take U-turn from $49k level or if this strong level gets broken, then the ONLY hurdle between Bitcoin's new All Time High is $58000 level. We can see a huge sell-off there as well.
2. Decreasing Volume:
Decreasing Volume is one of the factor that is showing that BTC's current trend is not very strong for Bitcoin to go straight to the moon. It needs a massive correction, accumulation and then the bull flight.
3. Indicators:
Renown Indicators like RSI and MACD are also pointing that bears have started stepping into the market.
RSI is showing Bearish Divergence on Daily Timeframe while MACD is doing bearish crossover.
4. My Opinion:
In my opinion, Bitcoin will not get volatile immediately but will range for a while. Bull will try to exhaust the resistance to move the price up while bears are waiting for the greed to make its ATH.
Currently, on hourly timeframe Bitcoin has just broken Head and Shoulders Pattern and technically, it should test $47800 level. Next strong support level is $42900 which is Weekly 21EMA + Global Support. Till then, we can scalp but I will not be in favor of any days longs trades.
After this week's close, we could see some volatility in the market. Get ready!
Stay safe and happy trading.
Comment down your thoughts.
Muneeb.
#SyedMuneebAli
