Bitcoin continues its choppy price action within the rectangle pattern (neutral zone). Its recent failures to move substantially higher from the resistance level suggest that not enough buyers are stepping into the market. That is also reflected in the low volume, which is significantly lower than just a few months ago. In addition to that, on 15th June 2022, the FED is set to increase interest rates and proceed with further steps toward economic tightening. We expect these developments to put more pressure on the U.S. stock market, to which Bitcoin is highly correlated. As a result, we expect the stock market to halt the bear market rally and reverse downward. Therefore, we have no reason to change our bearish view on BTCUSD; our price target stays at 25 000 USD.
Illustration 1.01 The picture shows the hourly chart of BTCUSD. It can be observed that Bitcoin has been moving mostly sideways for the past few weeks. As a result, the rectangle was formed; the upper bound acts as resistance while the lower bound acts as support. Red arrows indicate recent false bullish breakouts from the pattern.
Technical analysis - daily time frame MACD is bullish but stays in the bearish area. Stochastic is bullish. RSI is neutral. DM+ and DM- produce whipsaws. ADX declines. Overall, the daily time frame is neutral.
Illustration 1.02 The picture above shows the difference in volume size between the previous bull market and the current bear market.
Technical analysis - weekly time frame RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
İşlem aktif
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The stock market continues lower; we expect Bitcoin to catch up with the stock market with a delay. Tomorrow, we will seek confirmation in the continuous selling pressure.
There's a pretty strong trend in assets right now, so I think you'll be right, and the idea will work out. But I'm worried that maybe we just haven't considered all the factors. What do you think about that?
Tradersweekly
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@Solldy, I think the FED will proceed with a rate hike, which will reverse the "bear market rally."
Future_Wei
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Stop making people lose with your bearish bias. Here's mine:
Tradersweekly
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@Future_Wei, Yet you are the only one who prompts others to buy or sell assets; in this particular case BTC. Meanwhile, your ideas are written in "Chinglish," and you can not answer a simple question coherently. Then, why do you even argue with me? So far, you have failed to make any meaningful argument or answer simple questions. You waste my time with your irrational ideas and comments.