FX.co ★ teagan.orn | #Bitcoin chart analysis

Trading instrument Bitcoin - D1 timeframe chart. The overall trend here can be called neutral. The wave structure is unfolding to the upside. The MACD indicator is in the upper buy zone above its signal line. Earlier a very ambiguous situation had developed. The price was squeezed between levels. When earlier it rose from the very lows it reached the area of the horizontal resistance level 65960. It popped slightly above it — obviously a higher-level margin of error. There was a possibility for a decline: the level, together with the CCI indicator, was ready to move down from the upper overbought zone. Moreover, on that indicator you can see a bearish divergence — a strong sell signal. At that level it was a solid signal. Some decline occurred, but at the same time there is a support level below at 63438. This is a mirror level at the edge of the drop, and as is known such places are very strong, so at that time a contradiction arose. I thought that the price might pause at around this level and a battle between buyers and sellers would unfold. Most likely in the long term Bitcoin will resume its growth. However, it has a habit of trading sideways for a very long time with a wide amplitude. You might be sitting in long positions for months before it gives way to a new sustained upward move. But it was visible that the US dollar dominated the market as a whole, and this trend affected this instrument as well. As a result the price was pushed below the low. At the same time, a bullish divergence formed on the MACD — a strong signal for a rise. In addition, as confirmation there was a reversal pattern — a descending wedge. A mirror level at 60752 formed below; the price tested its area from above (allowing for error) and tried to rise. For a long time the price traded sideways down there for several weeks, hesitating to develop the rise that was clearly brewing. Ultimately, it shot up quite a bit over a few days, then pulled back somewhat and became stuck. I expected the price to strive to retest the 82008 level. And as can be seen, a significant rise occurred — the break above the peak happened. But will it develop further. There is a potential reversal zone just beyond the top, and a divergence on the MACD formed as well. I expect a drop back to the broken 82008 level, and only from there should new buys be considered. There is also an ascending trendline there. If the price does manage to push through these obstacles, then it will become possible for a decline to develop.