Bad 4 Bitcoin, Analyzing EMA50 (Going to $7.1k But $8.5K First)

14 ביולי 2020

Start by hitting LIKE now and let's do an analysis of the EMA50 indicator on the daily timeframe for Bitcoin (BTCUSD).

Back in April 2020, we predicted a "price jump" for Bitcoin based on the fact that EMA50, which was working as resistance at the time, continued to be challenged over and over.

When a resistance level is constantly challenged, it makes it weaker giving us a bullish signal.

Recently we have the contrary scenario...
EMA50 has been working as support and Bitcoin continues to challenge this support level over and over... Giving us a bearish signal.

When EMA50 (magenta line) finally gives in, we are going to see prices hit the low $7000, but first, we can see ~$8500 being hit.

Today, BTCUSD is trading below EMA50 once more...
We can see additional consolidation before the drop but the trading volume is now ultra-low.

Seeing how we have a lower high compared to the last time Bitcoin bounced after moving below EMA50, this tells me that the next drop we will have a lower low.

The next immediate target is marked with a grey dashed line on the chart... We will see how it goes!

What's your take on this analysis?
Will Bitcoin move lower or will it continue to trade sideways while the altcoins grow?

If you would like to know how the market will behave when this drop comes, which seems to be pretty soon... Take a look at the trade idea below:

Namaste.