Hello all, welcome back and let's do the analysis about bitcoin and the chart work for short term purpose.
The chart however has shown us everything in a very clear for me. The latest drop was because of the previous unbroken resistance that can't be broken as well. This is the consequence of trending at the resistance for too long without any action of broken out. Based on the psychological factor, if the price trends for too long near the support or resistance, there will be a saturation from the stakeholder and they are getting tired which makes them out of their position. This thing has happened lately with a signature move of $200 drop in the last 4 hours.
Based on the previous action, there are at least 4 attempts that try to breaks the resistance but it ends up in failure. Because of this thing, I do believe that the bears are now trying to push lower in the market.
The RSI and the price action look so bearish with the potential of breaking down of the first support. If the price can breaks down current support, there will be a move lower toward the S2 which moves align with the lower line of the channel acting as a support trend line. This S2 is the real support level for the decision maker whether the bear will take over control or the bulls will defend it.
The chart however has shown us everything in a very clear for me. The latest drop was because of the previous unbroken resistance that can't be broken as well. This is the consequence of trending at the resistance for too long without any action of broken out. Based on the psychological factor, if the price trends for too long near the support or resistance, there will be a saturation from the stakeholder and they are getting tired which makes them out of their position. This thing has happened lately with a signature move of $200 drop in the last 4 hours.
Based on the previous action, there are at least 4 attempts that try to breaks the resistance but it ends up in failure. Because of this thing, I do believe that the bears are now trying to push lower in the market.
The RSI and the price action look so bearish with the potential of breaking down of the first support. If the price can breaks down current support, there will be a move lower toward the S2 which moves align with the lower line of the channel acting as a support trend line. This S2 is the real support level for the decision maker whether the bear will take over control or the bulls will defend it.
