Bitcoin weekly after a breakout of the falling wedge, which is a bullish pattern, the price climbed to the resistance level which we mentioned in the last weekly report which you can see in the link below. The issue is most of the volume on this powerful breakout was short covering and short squeeze, not the real buy-and-hold volume. At the moment weekly volume is pretty weak which is an indication there is no more shorts to cover and a lack of bulls, but it could also be good if the price consolidates at this level and doesn't drop from here. In that case lack of volume on small candles would be bullish for bitcoin and would represent preparation for a move above BigRed or better say consolidation of the price before it tries to break BigRed or 200 weeks MA.
It is above all major MA which is bullish.
RSI is close to the mid-overbought area.
MACD is already showing signs it will diverge and start to move down.
Overall: Bitcoin had a healthy oversold bounce and likely it was only that! For the first time in its history, Bitcoin will have a death cross on the weekly chart which is an impressive and ultra-bearish sign. Actually first time in history we were below BigRed on weekly which is also bearish. After a such strong move up bitcoin found strong resistance on levels which was resistance during summer 2022, October 2022, and 2021. That resistance won't be easy to break.
For now, bitcoin is due to correct and drop at least to an 8-week MA and possibly to 20-week MA. Slowly dropping in the yellow box, the FIB support box, would open an opportunity for bitcoin to do a bull pullback and continue its up move.
However, if bitcoin starts to drop hard on increased volume that will be a significant leg up over, we will test lows from 2022 and highly likely the 8-10000 area, or even lower!
The sell signal from our Daily morning brief is staying until Bitcoin pump above those resistance levels on weekly bases and close there.
It is above all major MA which is bullish.
RSI is close to the mid-overbought area.
MACD is already showing signs it will diverge and start to move down.
Overall: Bitcoin had a healthy oversold bounce and likely it was only that! For the first time in its history, Bitcoin will have a death cross on the weekly chart which is an impressive and ultra-bearish sign. Actually first time in history we were below BigRed on weekly which is also bearish. After a such strong move up bitcoin found strong resistance on levels which was resistance during summer 2022, October 2022, and 2021. That resistance won't be easy to break.
For now, bitcoin is due to correct and drop at least to an 8-week MA and possibly to 20-week MA. Slowly dropping in the yellow box, the FIB support box, would open an opportunity for bitcoin to do a bull pullback and continue its up move.
However, if bitcoin starts to drop hard on increased volume that will be a significant leg up over, we will test lows from 2022 and highly likely the 8-10000 area, or even lower!
The sell signal from our Daily morning brief is staying until Bitcoin pump above those resistance levels on weekly bases and close there.
Consistency is the key of success....
