A Clear Analysis of Possible Bitcoin Outcomes Long & Short
There has been a lot of controversy over Bitcoin and Crypto the past month. I am a firm believer of crypto and the future i see higher all time highs. With that being said yes i make long postions but I also trade on shorts an dips also so im going to give you my best analysis of what the possible playout could be for the next few days to a week for BTC.
The original support line represented by the dotted purple line has been breached. This is not a good sign. We seen an extreme bounce off of the smaller green dotted line which represents the next support level at about 8000. Its clear we are still in a downward trend. We could look for a rally now as the RSI and KST/WMA all are screaming oversold. The dark red lien seems to me like an overall greater resistance level sloping downwards as well. Also I believe the original trend line (purple dotted line) will also act as a major resistance point now. Possible if it rally's close to this level to take profits and wait for it to down more. If the 8k support is broken we will likely see more down until 6k support range. I believe again in the future of not just bitcoin but crypto as a whole so if your looking to go long add small positions between 6k and 8.5k now. Also is not a bad time to wait and see how this plays out because unfortunately we are still in a downward trend and that resistance would have to be broken and at least a 12h or 1d candle to close above it show some sign of reversal for me.
Questions please ask and any constructive criticism or your opinion please leave in a comment. Hope this helps some of you.
The original support line represented by the dotted purple line has been breached. This is not a good sign. We seen an extreme bounce off of the smaller green dotted line which represents the next support level at about 8000. Its clear we are still in a downward trend. We could look for a rally now as the RSI and KST/WMA all are screaming oversold. The dark red lien seems to me like an overall greater resistance level sloping downwards as well. Also I believe the original trend line (purple dotted line) will also act as a major resistance point now. Possible if it rally's close to this level to take profits and wait for it to down more. If the 8k support is broken we will likely see more down until 6k support range. I believe again in the future of not just bitcoin but crypto as a whole so if your looking to go long add small positions between 6k and 8.5k now. Also is not a bad time to wait and see how this plays out because unfortunately we are still in a downward trend and that resistance would have to be broken and at least a 12h or 1d candle to close above it show some sign of reversal for me.
Questions please ask and any constructive criticism or your opinion please leave in a comment. Hope this helps some of you.
Kommentar:
Looking further at the 1 Week chart there is what we call a Death Cross an usually is a huge indicator of a big negative movement to come. Also MACD shows 1 red bar and its JUST STARTING to turn downward an hasnt even begun to go through. We may honestly see a lot further down over the next few weeks. Very hard to tell have to watch these support levels i mentioned above and signs for a reversal but we are still in the downward tunnel.
Kommentar:
So far so good. Watching for a break of any of the major lines///trends as seen above. Will update when we get closer or if i see any of these signs. 10500-11k Area and then the Major support level of 8k. We have stayed above this for 24hrs which is a good sign and shows a nice bounce and hopefully some upwards movement to the next resistance level an from there we can determine if more up or down. Stay tuned!
Kommentar:
We see that bitcoin broke the 8k support level and went right to the next level I had drawn out of 6k and boucned pretty hard. 1 day and 4 day rsi showing oversold but 1 week and 2 week RSI still could give us more downward movement in the next 2 weeks. We may see some sideways movement and ups and downs between 6200-7500 levels. This is crucial an we will see who wins either bears or bulls. Resistance at 7500 and then major resistance at 10k. Support at 5800-6200 if we break this then it may get real ugly. Watching closely and buying on the way down.