- March 1, 2021
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
Today’s strong session on makes it necessary to take a look at the short-term price action again.
* It is no coincidence that Bitcoin is on +15% gains since yesterday as it made contact with the MA200 (orange trend-line) on the 4H time-frame, which held and as a consequence initiated this very strong rebound.
* At the same time, the RSI is on a Bullish Divergence (Higher Lows) with the price action (Lower Lows), indicating that the selling that started on the February 22 peak, may be getting weaker.
* The very same RSI Divergence was posted last time from January 21 to January 27. It may be no coincidence that this Divergence emerged while BTC has made a Double Bottom at that time on a similar Symmetrical Support base. This shows that the current Bearish Wave is a repeat of January’s one.
* If that is the case, then we should look no further for a pattern than the Channel Up that seems to have emerged since late December. See how harmonically its median (dashed lines) has held (some times as Resistance, others as Support) on multiple occassions (red and green arrows).
All the above parameters suggest that based on that Channel Up, the price has most likely found its medium-term Support. If the 4H MA50, but more importantly the Channel’s median, break, then an aggressive path may open towards the $60-64k zone. However, if the price gets rejected on or below the median, the Support base will most likely get tested again where consolidation below the median may follow for around 10 days until it breaks.
Of course that is all speculation on the short-term, if you are a long-term BTCUSD trader/ investor don’t lose sight of the bigger picture as shown below:
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