Yesterday, Bitcoin broke above $30,800 on multiple cryptocurrency exchanges. Nevertheless, the momentum was not strong enough to propel Bitcoin back to its April 2023 high, which is slightly above $31,000. As a result, Bitcoin erased some of the early gains and temporarily fell below $30,000. Now, it trades near the $30,100 price tag, and we pay close attention to its ability to defend this level.
On the note of some technical developments, the volume has been growing for the past three days and accompanied the price higher, which is positive. At the same time, MACD started to cross through the midpoint, and RSI with Stochastic began to rise steeply. We will watch MACD’s ability to fully cross through the midpoint, which would be bullish; contrarily, if it fails and starts reversing, it will be bearish (and, indeed, very alarming). In regard to RSI, it is holding up slightly above 70 points; if it breaks to the downside, it will be bearish. In our opinion, this constellation of indicators (and some other ones) can present an interesting bearish setup with the short trade entry being triggered with the breakout below $30,000 and a very tight stop-loss above it.
Now, we would like to bring attention to the one thing we mentioned yesterday, and that is observing the number of Bitcoin balances with more than 100 and 1000 units to help us determine what is really going on with this rally. Over the past few days, there was much talk in the media about whales buying lows near $25,000 and positioning themselves for the long term. While it is true that the number of mentioned balances grew, do not forget that this number also grew prior to the path to April 2023 highs. Then, once above $30,000, the number of such large holders started to decline rapidly. So, in our opinion, this is something to watch out for (as it could represent the ultimate bull trap in the making), especially as the number of balances with more than 100 Bitcoin is significantly less than during the period when bigger players were accumulating (preceding April 2023 highs).
Technical analysis gauge
Daily time frame = Bullish
Weekly time frame = Slightly bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
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 be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
On the note of some technical developments, the volume has been growing for the past three days and accompanied the price higher, which is positive. At the same time, MACD started to cross through the midpoint, and RSI with Stochastic began to rise steeply. We will watch MACD’s ability to fully cross through the midpoint, which would be bullish; contrarily, if it fails and starts reversing, it will be bearish (and, indeed, very alarming). In regard to RSI, it is holding up slightly above 70 points; if it breaks to the downside, it will be bearish. In our opinion, this constellation of indicators (and some other ones) can present an interesting bearish setup with the short trade entry being triggered with the breakout below $30,000 and a very tight stop-loss above it.
Now, we would like to bring attention to the one thing we mentioned yesterday, and that is observing the number of Bitcoin balances with more than 100 and 1000 units to help us determine what is really going on with this rally. Over the past few days, there was much talk in the media about whales buying lows near $25,000 and positioning themselves for the long term. While it is true that the number of mentioned balances grew, do not forget that this number also grew prior to the path to April 2023 highs. Then, once above $30,000, the number of such large holders started to decline rapidly. So, in our opinion, this is something to watch out for (as it could represent the ultimate bull trap in the making), especially as the number of balances with more than 100 Bitcoin is significantly less than during the period when bigger players were accumulating (preceding April 2023 highs).
Technical analysis gauge
Daily time frame = Bullish
Weekly time frame = Slightly bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
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 be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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