Bitcoin (BTC/USD) Daily Chart Technical Analysis

26 дек. 2024 г.

• Technical Analysis of the Chart

• #1. Chart Overview:

• Asset: Bitcoin (BTC/USD)
• Timeframe: 1Day (Daily)
• Exchange: Coinbase
• The chart displays Bitcoin's price action and volume, MACD, and RSI indicators.
• A Head and Shoulders pattern is visible, suggesting a potential trend reversal from bullish
to bearish.
• There is significant bearish divergence across indicators, signaling weakening momentum.

• #2. Key Chart Features and Pattern Observation:

• Head and Shoulders Pattern: A textbook Head and Shoulders pattern is observed with:
• Left Shoulder: Formed by a local peak.
• Head: A higher peak following the left shoulder.
• Right Shoulder: A lower high after the head.
• Neckline Breakdown: The price breaks below the neckline, signaling a potential
downward move.
• Target Price: Based on the pattern, the target price seems to be significantly lower.


• #3. Indicator Analysis:

• Volume:
• A notable decline in volume during the formation of the right shoulder suggests weak
buying interest.
• Volume spiked during the breakdown, supporting bearish momentum.

• MACD:
• Bearish divergence is observed.
• The MACD line has crossed below the signal line, indicating bearish momentum.
• Histogram bars have turned red, further confirming the bearish trend.

• RSI:
• RSI is trending downward, showing weakness.
• It remains below the midpoint (50), which suggests bearish sentiment.
• Bearish divergence is also visible on the RSI, aligning with the MACD analysis.


• #4. Key Levels or Price Levels:

• Support Level: Around $58,863.90
• Immediate Resistance Level: $99,860.00
• Current Price: $95,279.66
• Target Price (Head & Shoulders Breakdown): Approximately $80,000–$70,000


• #5. Overall Summary:

• The Head and Shoulders pattern indicates a potential bearish reversal.
• Indicators like MACD and RSI support the bearish outlook with visible divergences and
downward trends.
• Volume analysis also suggests weakening buying pressure and stronger bearish activity.


• #6. Trading Strategy:

• Short-Term Traders: Look for short-selling opportunities after the confirmed neckline
breakdown.
• Stop Loss: Place stop loss above the right shoulder (~$99,860).
• Take Profit: Target levels near $80,000–$70,000.
• Long-Term Investors: Wait for a strong support zone before accumulating more positions.


• #7. Conclusion:

• The chart displays a strong Head and Shoulders pattern with bearish confirmation from MACD, RSI, and Volume indicators. The breakdown below the neckline suggests a potential price correction towards $80,000–$70,000. Traders should remain cautious and plan their trades with clear stop loss and target levels.