Bitcoin technical Analysis Update (BTC/USD): BTC is trading near critical zone, Watch out for recovery here.
Hi Friends, welcome to this TA update of bitcoin,
If you follow my post you would remember that I suspected a fall till the black dotted trend line which has now occurred and I did not want to post altcoin analysis as well since a falling BTC affects all as one.
Since there has been no interesting developments in BTC so I thought I should hold back and wait for something to appear, in the meantime, BTC tried to recover but failed at combined resistance of EMA200(BLUE) and EMA50(orange) multiple times.
Now you can see BTC has reached the black dotted trendline which is originating at beginning of BTC rally, this level is critical to watch and after that the 78.6% retrace. If BTC falls below both these levels then the possibility of inverse head and shoulders patter that I had drawn and expected to be formed will be very weak and there will be siren of control shifted to beers again and we will easily be aiming at a lower low than the last time.
But I needed to talk about some positive signal as well which is appearing on the chart predicting a bounce is near, you can see I have drawn a trend line on the MACD histogram which is a upward. You will also notice that I have slowed my MACD from the common to eliminate some noise and better get a better gauge of the situation in this fall.
This uptrend was formed when BTC achieved a lower low in last candle in charts but on the MACD it was not able to form a lower low and that is bullish sign predicting a green candle in making but that will be the recovery point or not that will be interesting to watch since the boundary is near where bulls can try for a last time or lose control big time to bears again.
If BTC bounces wait for the right shoulder to get formed before going long and enter long only at breakout of that pattern as I have warned many times, trade a pattern only when the breakout has occurred. fot the short you can enter once the EMA resistance is crossed targeting the breakout of H&S.
That will be all for now, I will keep you guys Posted in the as the chart develops further.
Till then Goodbye and Best of Luck to You People.