Technicals Show a Bearish Trend. Now is Not a Good Time to Buy

25 Nis 2022

Since early 2021, Bitcoin has been moving in an approximate range of $30000 ~ $66000. The price movement has been divided into clear bullish and bearish segments. In each segment, we can identify continuous chart patterns supporting each movement. Currently, the price is moving within a bearish segment. After price has reached a yearly low of 33000 back in January, a bearish flag was formed, establishing a correction period. Last Friday, the price has broken out of the bearish flag channel. Therefore, this indicates that another bearish impulse could take place and drop the price back to the previous low of 33000 level to fill the gap. RSI also shows that there are rooms for the price to drop. We believe that bitcoins can be bought at a discount at the bottom of the ranging channel (29000~30000) because there are simply no bullish signals in the market at the moment.

We will update this post when a potential entry opportunity has been created.