Bitcoin (BTC) its decline from Monday analysis he didn’t stop too much. At least in terms of higher time frames. The intraday charts definitely show that shoppers are active, but their efforts are not enough. From the point of view of the daily chart, the bears definitely won on the whole line.
So today is very important, because the decline continued at night, so we briefly fell below the support of 42,000 USD. As for Monday’s slump in the stock market, according to the pre-market, the decline has stopped. But yesterday’s candle is really quite bearish and mainly has huge volumes.
Current situation at 1D BTC / USD
For completeness, we will briefly summarize the development from recent days. The price broke the S / R level of USD 47,000 in the middle of last week. It was, of course, a partial success. Subsequently, the price consolidated at the level, which told us that Bitcoin is quite possibly preparing for the rebound. Then we would get tested soon resistance confluence around $ 52,500.
But as we know, there was a failure yesterday and Bitcoin fell to the S / R level of 42,000 USD. In just one day, BTC depreciated by about 10%. In relative numbers, the statement is nothing horrible, but the shape of the candle itself must be of concern to us. Monday’s candle was closed in full. The bottom wick is almost non-existent.
Described means that the sellers completely dominated the BTC market yesterday. More precisely, it was clear intraday that the bulls were defending themselves. But it still wasn’t enough for them. The sellers eventually rolled them over, which is not a very good signal. Looking at yesterday volumes it can be stated that they were easy in the context of the bull run above average. So nothing extreme, but they were certainly not negligible.
The course further tested the moving average curve (MA 100). The reaction was immediate. The price returned very quickly above 42,000 USD. There had to be a lot of stop losses, which many had to freeze. In any case, the last-minute reflection was expected. As I mentioned in streams and video analysis, according to volume profile the whole area under $ 42,000 is one big wall.
Now it is very important for us how to close the day candles. We need to find out how real both parties are. If the daylight closes again in bearish form, it is evident that from the point of view of higher time frames, the sellers completely win. However, if a hammer or something similar appears in the graph, at least there should be retracementu.
Indicators
The daily RSI fell below 40 points. If he stays here, it will be a negative signal. On the daily MACD, it seemed for a while that a bullish cross was coming, which logically ruined the last drop.
In conclusion
From the intraday charts, it is obvious that they are shopping, but then the bulls still get through the mouths, as the saying goes. Therefore, I recommend waiting for the form of a daily close and then only decide whether it is worth it. Of course, it also depends on the measurable initiative of the bulls – buying pressure.
Please note that the FOMC has a meeting today and tomorrow. And not only them, the Central Bank of Japan too. The Central Bank of England on Thursday. This week is rich in this respect and will affect the markets.
ATTENTION: No data in the article is an investment board. The analysis does not try to predict future price developments. It serves exclusively as an educational text on how to approach the market mentally. Before you invest, do your own research and analysis, you always trade only at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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