Technical analysis update: BTCUSD (8th December 2021)

Bitcoin broke above 50 000 USD in tandem with our expectations of a bounce in price (which we expect to be short lived). Currently, BTCUSD trades around 50 500 USD price tag; simultaneously, it trades within the neutral zone depicted in the yellow background. At the moment, we continue to maintain a bearish stance on Bitcoin. We expect an eventual breakout below the neutral zone and resumption of downtrend. Breakout above the neutral zone would force us to reassess our bearish view.

Technical analysis - daily time frame
RSI's bearish structure remains intact. We will observe RSI closely in the following days and we will look for possible crossover below 30 points. We expect such an occurrence to be accompanied by heavy selling pressure; MACD is bearish too as it remains in the bearish area below 0 points. Only Stochastic points in a bullish direction. Additionally, DM+ and DM- show bearish conditions in the market. ADX continues to grow which suggests that the prevailing trend is strengthening (current bearish trend). Overall, the daily time frame is bearish.

Our expectations of crossover in RSI:

We need to closely watch RSI and whether it will manage to pierce 30 points to the downside. We expect such phenomenon to be very bearish for BTCUSD.

Technical analysis - weekly time frame
RSI, MACD and Stochastic are all bearish. Additionally, DM+ and DM- show bearish conditions in the market. ADX contains low value which suggests that the prevailing trend of higher degree (recent bull trend) is very weak. Overall, the weekly time frame is bearish. Indeed, it coincides with conditions present in the daily time frame.

Support and resistance
Short-term support sits at 48 834 USD and short-term resistance lies at 52 956 USD. Between these two price levels lies the neutral zone. Major support level is at 28 600 USD while major resistance level is at 69 000 USD.

Other support and resistance levels
Other resistance levels appear at 59 564 USD and at 64 895 USD. Other support levels can be found at 42 900 USD and at 37 573 USD.

Other form of immediate support/resistance level derived from simple line:

Our bold predictions from the past:

Here we correctly predicted the double top formation. We also highlighted low volumes suggesting evaporation of new buyers at elevated prices. Subsequently, BTCUSD dropped over 39%.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.

İşlem aktif:

We continue to maintain bearish stance as we currently watch developments on hourly time frame.

We expect breakdown in price and RSI.

Yorum:

Yellow lines are indicative of direction and not price level we expect to be reached.

İşlem aktif:

In tandem with our expectations BTCUSD and RSI decline on hourly chart.

RSI is due to perform bearish crossover.

Yorum:

Bounce in price proves to be short-lived as price breaks below the short-term support and towards 48k USD.

İşlem aktif:

Bearish crossover in RSI occured as we predicted. Price dropped 5.7% today.

Yorum:

It is possible that price will bounce up little bit overnight. We will reassess situation tomorrow. However, daily time frame remains bearish. Actually, RSI on daily time frame is due to perform bearish crossover below 30 points which is extremely bearish for BTCUSD.

İşlem aktif:

Daily time frame:

Yorum:

Purple line represents RSI. It continues to develop bearish structure and we expect it to perform bearish crossover. We expect such phenomenon to be accompanied by heavy selling pressure.

İşlem aktif:

RSI did not manage to pierce below 30 points on the daily time frame. Indeed, it reversed. This is bullish for BTCUSD. We will observe whether RSI will manage to grow further. BTCUSD remains in the neutral zone and it currently presents interesting setup.

İşlem aktif:

So far BTCUSD failed to move above 50k USD price tag. ADX contains high value which suggests that correction nears its peak. It is possible that reset of ADX (which measures strength of the trend) will be done through sideways price movement within neutral zone. Weekly technical analysis remains bearish with low ADX and oscillators pointing to the downside which is overall bearish.

İşlem aktif:

Another bearish breakout from the neutral zone occurred.

Due to this bearish condition we we will observe RSI and we will watch out for crossover below 30 points. We expect such phenomenon to be acompanied by heavy selling pressure.

İşlem aktif:

Idea was updated in the following post: