Bitcoin: Bearish Signals We Need
The price bounced from SMA50 and moved upward. Does it mean that the bearish model was broken and we will see the continuation of the uptrend? Let's make everything clear!
We have to take into consideration new information.
The price bounced from SMA50 and it gives us a bullish signal. The same goes for a new swing low which is higher than the previous one.
The market is not ready to move downward, yet. Does it confirm that we have a lot of active buyers who want to open long positions in the current zone? No, we don't have active buyers at this zone as buying at the top of the market is a stupid idea. Also, we are not sure that the price will be able to break the strong resistance zone formed by the upper line of the price channel and 14 000$ resistance level.
Yes, we will be able to see a new attempt to break this zone, and we also should be ready to see a false breakout. But the upward movement will make no sense. We shouldn't expect the breakout above the strong resistance and a new upward movement without new fundamental factors. US Election will be able to change the situation and support Bitcoin? Maybe yes, but we don't know it right now.
That's why I think the downward movement is logical. It will be great if we get additional bearish signals. I would like to see breakouts below SMA50 and a new uptrend line. After that, the road toward 12 000$ will be opened.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
We have to take into consideration new information.
The price bounced from SMA50 and it gives us a bullish signal. The same goes for a new swing low which is higher than the previous one.
The market is not ready to move downward, yet. Does it confirm that we have a lot of active buyers who want to open long positions in the current zone? No, we don't have active buyers at this zone as buying at the top of the market is a stupid idea. Also, we are not sure that the price will be able to break the strong resistance zone formed by the upper line of the price channel and 14 000$ resistance level.
Yes, we will be able to see a new attempt to break this zone, and we also should be ready to see a false breakout. But the upward movement will make no sense. We shouldn't expect the breakout above the strong resistance and a new upward movement without new fundamental factors. US Election will be able to change the situation and support Bitcoin? Maybe yes, but we don't know it right now.
That's why I think the downward movement is logical. It will be great if we get additional bearish signals. I would like to see breakouts below SMA50 and a new uptrend line. After that, the road toward 12 000$ will be opened.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
כתב ויתור
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