Bitcoin is showing bearish daily candles below the 21 ema zone on the daily chart. The bearish breakout is invalidating our own wave 4 analysis.
Bitcoin (BTC/USD) is showing bearish daily candles below the 21 ema zone on the daily chart. The bearish breakout is invalidating our own wave 4 (pink) analysis.
Despite the strong bearish momentum, the overall uptrend is still valid although price action will need plenty of time before recovering. Let’s review.
The BTC/USD decline is certainly very strong – perhaps news was a catalyst. In any case, the bearish fall is likely to scare investors away from BTC/USD for the moment. Either by creating more sellers or stopping buyers from making a purchase.
Let’s analyse the daily chart first:
On the 4 hour chart, we see that price action was unable to make any significant bullish bounce at the 144 – 233 ema zone:
Good trading,
Chris Svorcik
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
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Chris Svorcik is co-founder, trader, and analyst with Elite CurrenSea (www.EliteCurrenSea.com) since 2014.