? BTC/USD Challenges Key 21 EMA Resistance Zone ?
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Hi traders,
Bitcoin (BTC/USD) has broken above the downtrend channel but other resistance levels remain a factor. These include horizontal levels (brown lines) but also the 21 ema zone (price is now in those MA’s).
BTC/USD
Day
BTC/USD recently bounced at a long-term moving average but the bullish reaction seems corrective and choppy and a bearish continuation is certainly a possibility in the upcoming days. Price could challenge the round level of $5000 if price does break below the 21 EMAs and previous bottom. For an uptrend to emerge, price must break above the 21 ema and resistance levels with strong momentum.
4 hour
BTC/USD is showing a strong downtrend because all the moving averages have remains bearish aligned for the entire chart. However, a divergence pattern as price made a new lower low but the oscillator failed to confirm the same bearish momentum. The divergence could indicate a larger bullish correction or reversal but it is not a must. Double divergence is generally speaking a stronger reversal signal. A bearish breakout of the channel is possible but the main question is: how will price react to the previous bottom? A bullish breakout could indicate a larger bullish push. BTC/USD seems indecisive at the moment until a larger breakout occurs.
4 hour (part 2)
This image shows BTC/USD while using our SWAT software. The red candles below the moving averages indicate that the bears are in control. Currently price is building a retracement because we see blue candles below the medium-term moving average. A break above this medium MA could indicate a first change of the trend.
Good trading,
Chris Svorcik
Elite CurrenSea
Grt analysis on BIT can have your wave count?
Thank you! I will try to add it next time on Friday
Will welcome that and leads from your other indicators i.e RSI, Macd and Stoch where possible. Thanks