BITCOIN - Temporary relief

30 авг. 2022 г.

After yesterday's dip, the market enjoys a time of relief. However, we think the relief is temporary as there is no significant change in technical or fundamental factors. Therefore, with an unchanged bias on Bitcoin, we stick to the bearish outlook for the cryptocurrency with price targets at 17 500 USD and 15 000 USD.

Illustration 1.01

Yesterday, we stated the crossover between 20-day SMA and 50-day SMA was imminent. Later, the crossover occurred, serving as a bearish confirmation; now, ideally, we would like to see no whipsaws between two moving averages.

Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.

Illustration 1.02

One development we pay attention to at the moment is the potential creation of a new downward-sloping channel on the daily chart. The upper bound is created by a trendline connecting peaks between the 15th and 26th of August 2022; the lower bound is parallel to the upper trendline starting from a low on the 19th of August 2022. If a breakout above the upper bound occurs, it will likely lead to the distortion of the pattern.

Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.

Illustration 1.03

The hourly charts shows drying up liquidity.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.