Bitcoin : The weekly candle close and the perspective of it
Hello all, Happy Monday and I hope you are all doing great in this market. Now, I want to cover the weekly view of the bitcoin in very detail analysis.
The first thing that I want to give the highlight is usually become the most important thing which highly affect the market movement. And from this technical view, the previous performance becomes the most important. Looking at the top of bullish market around July 2019, we can see that there was a shooting star candle followed with an extra bullish candle but due to there isn't enough strength of that bullish candle, the close price didn't close above the high of the previous candle and that's why the price goes down in upcoming week. Similar with this movement, the price has shown us a similar price action with the July 2019 top. Is this action only a bull trap? We should wait.
The second thing is that the price is still trending at around the blue resistance point. This resistance however is a strong resistance due to the previous action of the price too. Back at the September 2019 when there was a beginning of the bearish market confirmation with a breaks down of current level. Which makes current action to retest the previous broken support as resistance here.
The third and the last thing to see is the RSI as the oscillator indicator. This might be the only reason why I leave current movement for the long term unbiased. Yes, at this indicator the RSI is still trending on neutral zone between the 60 - 40 level which is an area of uncertainty. Breaks above the 60 will make the bullish bias and breaks below the 40 will confirm the bearish bias.
At last, there is a quotes saying patience is gold and I think this time we have to apply this quotes as well. We haven't understood yet whether this action is bull trap or not. But, it looks like a bull trap for me.
The first thing that I want to give the highlight is usually become the most important thing which highly affect the market movement. And from this technical view, the previous performance becomes the most important. Looking at the top of bullish market around July 2019, we can see that there was a shooting star candle followed with an extra bullish candle but due to there isn't enough strength of that bullish candle, the close price didn't close above the high of the previous candle and that's why the price goes down in upcoming week. Similar with this movement, the price has shown us a similar price action with the July 2019 top. Is this action only a bull trap? We should wait.
The second thing is that the price is still trending at around the blue resistance point. This resistance however is a strong resistance due to the previous action of the price too. Back at the September 2019 when there was a beginning of the bearish market confirmation with a breaks down of current level. Which makes current action to retest the previous broken support as resistance here.
The third and the last thing to see is the RSI as the oscillator indicator. This might be the only reason why I leave current movement for the long term unbiased. Yes, at this indicator the RSI is still trending on neutral zone between the 60 - 40 level which is an area of uncertainty. Breaks above the 60 will make the bullish bias and breaks below the 40 will confirm the bearish bias.
At last, there is a quotes saying patience is gold and I think this time we have to apply this quotes as well. We haven't understood yet whether this action is bull trap or not. But, it looks like a bull trap for me.
