So the bitcoin market is bearish and falling for many days. From my point of view, it looks like bitcoin is going to reach $5800 support zone which is a very strong support. I would say that keep an eye on this support as if it is broken the bitcoin will collapse further down. But if we look at the technical picture posted above. we can see several reversal signals. Like
- RSI is showing divergence. Also RSI had turned oversold just a couple of days i.e. it fell below 30.
- MACD is showing tripple divergence which is from technical analysis point a very strong bullish signal.
- ADL line is increasing and reaching new peaks despite falling price indicating the bottom or short term reversal could be near.
- $5800 is a very strong support and should not be easily broken, not in first attempt.
Keeping in mind all above mentioned points, we could see that there is upside potential for Bitcoin and we could see bullish setups popping up shortly. But from taking entry position perspective, taking position before trend line break is very risky. Though how strong the support could be, $5800 could still break seeing the too bearish market sentiment. So we should not enter into position before confirming the upward momentum but these setups should indicate that we should be considerate about taking long positions if it pops up.
Disclaimer:
All ideas, opinions, and/or forecasts, expressed or implied herein, information, charts or examples contained, are for informational and educational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
Image source:
https://www.tradingview.com/x/TdGFmobU/
I think bitcoin will collapse further down till $5500 and then will make a reversal.
possibility is there that's why i am also cautious until trend line is broken. Also there are many bullish signs popping.
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Nice analysis. I think for now bitcoin gonna go down to 5.8k or 5.6k.