Bitcoin continues to show weakness on the back of a strengthening dollar and global problems, and of course, the Bitcoin conference in Miami. However, there are also signals that the local bottom may be close.
The weekly chart looks weak. The breakout of resistance and level 21 MA was followed by a top pattern, and a breakout once again failed. We already saw something similar in February: an up move, a nasty shooting star (more like a doji this time) and a big down candle. The good news is that in the case of the February correction, the price bounced already on the third candle.
Such a force of gravity is not surprising.
I was hoping that $45,5k finally holds as support and on smaller timeframes, which would be a great indication of the strength of the market. However, this was not destined to come true. Another proof that the lines on the charts are only ideas.
Full dip in $100, 5 thousand happens.
As you can see, the technical structure in the 802 year is still characterized by larger lows, and well it would, of course, continue this trend. To do this, you need to form a bottom above the area of $37 thousand, previous local low.
The bullish divergence formed for several days, but was replaced by a hidden bearish one (red arrows). In fact, a few candles ago, before the fall, we already had a confirmed bullish divergence, however, the price continued to decline.
Usually this indicator works reliably for me, but no signal can be accurate to 100%. However, the formation of a local bottom at the current level and confirmation of a bullish divergence still seems likely to me. This is what I will be watching. And for action now, in my opinion, is not the right time: you have to wait.
disclaim responsibility for any investment advice that may be contained in this article. All judgments expressed express exclusively the personal opinions of the author and the respondents. Any actions related to investments and trading in the crypto markets are associated with the risk of losing the invested funds. Based on the data provided, you make investment decisions carefully, responsibly and at your own peril and risk.
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