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

Trading instrument Bitcoin - D1 chart. The overall trend here can be described as neutral. The wave structure is forming an upward pattern. The MACD indicator is in the upper buy zone above its signal line. Earlier a very contentious situation developed. The price was squeezed between levels. When earlier they rose from the very lows they reached the area of the horizontal resistance level 65960. They went slightly beyond it, which is understandable as the tolerance of the higher-level. There was an opportunity for a decline here: the level, and the CCI indicator was ready to exit downward from the upper overbought zone. In addition, on this indicator you can see a bearish convergence - a strong sell signal. On support at the level it was a worthy signal. Some decline occurred, but at the same time there was 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 it created a contradiction. I thought the price might pause at roughly that level and a battle between buyers and sellers would unfold. Most likely in the long term Bitcoin will resume its growth. Only it has a habit of moving sideways for a very long time with a wide amplitude. You can sit in long positions for more than a month while it gestates a new directional upward move. But it was visible that the US dollar dominated the market overall 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 indicator used, a very decent signal for growth. In addition, as confirmation there was a reversal pattern — a descending wedge. A mirror level of 60752 was formed underneath; the price tested its area from above (considering tolerance) and tried to rise. For several weeks the price traded in ranges at the bottom, hesitating to develop the growth that was clearly brewing. In the end it shot up quite sharply over several days, then pulled back somewhat and became stuck. I expected the price would attempt to renew the 82008 level. And as you can see, the rise was considerable — the breakout above the top occurred. The question is whether it will develop further. There is a potential reversal zone beyond the top, and a divergence on the MACD has formed. There was a descent into the area of the broken 82008 level and, after pausing, the price made a bounce upward. But it was scary to buy against the divergence. And even now it may be limited to this bounce and head down.