Is $BTC about to reach its bottom?
Key levels
Short term
Supports—> S1: 6800 & S2: 6500
Resistances—> R1: 8000 & R2: 8000
Medium term
Supports—> S3: 6100 & S4: 5700
Resistances—> R3: 8600 & R4: 10000
Potential scenario
As we argued last week and we can see in the chart, Bitcoin has been and is trapped in a bearish trend that is lasting 5 months by now. It has been continuously making decreasing maximums, which is the most clear sign of bears taking over.
However, if we zoom out a bit we can see that these falls can be understood as a healthy and proportional correction of the price after an increase from $3500 to $13,800. We can expect further falls, however, the supports S2 and S3 seem solid enough to contain the price from falling below $6,100.
TA comment
For the current scenario, the indicator Aroon could play an important role in spotting the beginning of upward trends, click here to watch a short video describing this indicator. Aroon up, measures the frequency of new highs during uptrends. If the price is continuously rising and making new highs, Aroon up will be 100 and Aroon down 0. However, when the price is not making new highs, it means that the uptrend is fading out and we can have a correction or a trend reversal. If it starts making new lows, Aroon down will be 100 and Aroon up 0.
When Aroon up crosses Aroon down upwards, the price is becoming more bullish and it generates a buy signal. Therefore, by selecting Aroon in your automated strategy, it can pinpoint the beginning of new bullish trends and open positions automatically when this happens.
Pattern
During the latest falls, the pattern Marubozu Bearish has appeared couple of times. It is a bearish pattern represented by one candle. This one has a long body and short, or none, wicks with a downward movement. It is usually spotted during strong bearish trends and signals a sell.
If selected in your automated strategy, the Marubozu Bearish signals a sell.
Short term
Supports—> S1: 6800 & S2: 6500
Resistances—> R1: 8000 & R2: 8000
Medium term
Supports—> S3: 6100 & S4: 5700
Resistances—> R3: 8600 & R4: 10000
Potential scenario
As we argued last week and we can see in the chart, Bitcoin has been and is trapped in a bearish trend that is lasting 5 months by now. It has been continuously making decreasing maximums, which is the most clear sign of bears taking over.
However, if we zoom out a bit we can see that these falls can be understood as a healthy and proportional correction of the price after an increase from $3500 to $13,800. We can expect further falls, however, the supports S2 and S3 seem solid enough to contain the price from falling below $6,100.
TA comment
For the current scenario, the indicator Aroon could play an important role in spotting the beginning of upward trends, click here to watch a short video describing this indicator. Aroon up, measures the frequency of new highs during uptrends. If the price is continuously rising and making new highs, Aroon up will be 100 and Aroon down 0. However, when the price is not making new highs, it means that the uptrend is fading out and we can have a correction or a trend reversal. If it starts making new lows, Aroon down will be 100 and Aroon up 0.
When Aroon up crosses Aroon down upwards, the price is becoming more bullish and it generates a buy signal. Therefore, by selecting Aroon in your automated strategy, it can pinpoint the beginning of new bullish trends and open positions automatically when this happens.
Pattern
During the latest falls, the pattern Marubozu Bearish has appeared couple of times. It is a bearish pattern represented by one candle. This one has a long body and short, or none, wicks with a downward movement. It is usually spotted during strong bearish trends and signals a sell.
If selected in your automated strategy, the Marubozu Bearish signals a sell.
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