Not Very Good Friday
I hope everyone is doing well today, because bitcoin certainly isn't. The majority of the market seems to be following too - as usual - so I'm just going to give the Bitcoin charts a look today and see what I can spot.
The big question on my mind is:
Will We See A Double Bottom?
If you have any thoughts on that then let me know! It certainly seems like the possibility is there for it to happen.
I'm going to look at the 4 hour, Daily and the Weekly charts today to try and put the full picture together. If you want a TL;DR version: The weekly chart still looks bearish, but another bounce could be coming soon if the daily chart is anything to go by. Let's see...
4 Hour Chart = Bearish But Oversold
We can see selling volume has picked up substantially recently, and that's not surprising when the price dropped as low as $6500 earlier.
What we can see here is that while the majority of the signs are bearish, some oversold bounce be coming again soon (we've already had 1 bounce). There's no guarantee of that, but we'll see!
Things are also starting to look oversold on the daily chart too:
The RSI isn't quite low enough for me to say 100% it's oversold, but it's certainly getting close.
That said, the MACD remains on the bearish side for both time frames.
Things are also still bearish on the weekly chart too:
I'm a firm believer that this is the reason the correction hasn't finished yet, but remember I'm still a novice. :-P
The weekly chart remains bearish, and if it's true that the longer term trend tends to be more dominant than any shorter ones? I think we may have a way to go yet.
Stop Being Bearish!
I'm trying to look for the positives, but just trying to realistic with the above bearishness.
There is one key positive that a further drop in prices could see, and that would be a possible double bottom at around that $5950 or so level. If that level can hold, then we might be on to new highs!
We've still got the downtrend line to contend with too!
Any thoughts? Let me know below!
Thanks for viewing!
Want more technical analysis and crypto related posts? See also: @toofasteddie, @gazur, @ew-and-patterns, @pawsdog, @cryptomagic, @exxodus, @beiker, @lordoftruth, @masterthematrix, @cryptoheads, @tombort, @maarnio, @steemaze & @briggsy
Not intended as investment, financial, or trading advice. For entertainment purposes only.