Looking at the 1hr chart shows that we are slowly losing momentum on the upside. While bears are struggling to break through 9.2k, bulls have been setting lower and lower highs after a significant price drops for the entire week. The possibility of the price going to the moon seems extremely unlikely. If bulls can manage to get the price up to 9.6k and break through that resistance we could be looking at a potential bull market, but we've struggled to get out of the 9.4k range so 9.6k may be quite some time away.
I've added the Bollinger bands to my chart as it seems to be more reliable at signaling overbought/oversold periods compared to the Stochastic oscillator. We can also use as a signal for volatility in the market. It looks like the bands are starting to spread out a bit, which could be indicative of stronger price action than we've seen all week.
Aside from the bands, the 144 WMA is acting as resistance at the 9.4k level which is consistent with previous support/resistance levels. As stated before, if the price manages to break through 9.4k we can expect to see a rush to 9.5k, and if the price breaks through that, we can see the same to 9.6k. But once again ~9.6k is the highest price point we've seen in two weeks so there is bound to be very strong resistance there. If the price rejects 9.6k again, that would be the 3rd or 4th rejection. At that point I expect to see the price dump quite a bit.
Overall I think we are looking at a short-mid term bearish trend. On the daily chart we currently have a doji for today which could be a reversal signal, but as of now there are 7 hours until the daily closes, so we'll have to wait and see.
Happy trading, and please leave a like if you agree or this has helped you!
I've added the Bollinger bands to my chart as it seems to be more reliable at signaling overbought/oversold periods compared to the Stochastic oscillator. We can also use as a signal for volatility in the market. It looks like the bands are starting to spread out a bit, which could be indicative of stronger price action than we've seen all week.
Aside from the bands, the 144 WMA is acting as resistance at the 9.4k level which is consistent with previous support/resistance levels. As stated before, if the price manages to break through 9.4k we can expect to see a rush to 9.5k, and if the price breaks through that, we can see the same to 9.6k. But once again ~9.6k is the highest price point we've seen in two weeks so there is bound to be very strong resistance there. If the price rejects 9.6k again, that would be the 3rd or 4th rejection. At that point I expect to see the price dump quite a bit.
Overall I think we are looking at a short-mid term bearish trend. On the daily chart we currently have a doji for today which could be a reversal signal, but as of now there are 7 hours until the daily closes, so we'll have to wait and see.
Happy trading, and please leave a like if you agree or this has helped you!
