Bitcoin at Edge of Downtrending Pitchfork: Will Bulls Show Up?
On the hourly analog Bitcoin Bitfinex chart, I have been tracking a pitchfork that I went over in some detail yesterday that has been tracking the downdraft since May 5th. As expected, price has pretty much trended sideways over the past 24 hours without making a significant move, but that appears likely to change quite soon.
Price is still in this red down-trending channel on the upper band of the pitchfork and while it’s showing signs of wanting to make a breakout to the upside there are many bearish cases to be made too.
The light blue line that is wiggling across the snapshot is the 50 hour moving average and just as before price has been hugging, testing and retesting this line for the past 12 hours constantly.
This pricing movement is reminiscent of the bear flag that was painted on June 8th with the 50 hour MA battle and the subsequent breakdown from $7,600 to $6,100. Price is still on the bull side of the 50 hour MA and I am betting there is at least an attempt to move outside the pitchfork over the next few hours. Once again, the volume is going to be key to see if the bulls can push price significantly higher.
If price can’t make a close above the $6,825 level, which is the upper black trend-line on the bearish wedge running up through the pitchfork, then I can see price heading back to $6,475 near the bottom range of the bearish flag and the outside of the 1sd blue channel on the pitchfork. I have marked it with a target.
On the bullish case, making a higher high above the blue horizontal line at $6,852 will be critical over the next 24 hours. There are many different patterns that could take place here, but I find the bullish flag between the pink lines also compelling for a potential pop to the upside. The upper yellow line of the bearish flag at $6,950 is a decent start for now.
The RSI is relatively neutral for now and could go both ways, and I am liking the look of the MACD which has the histogram starting to trend upwards and blue trigger line starting to curl upwards bullishly as well. Even when the trigger line crossed bearishly under 0 on the indicator earlier today there was very little follow-through from the bears, so it appears upward first is the next target.
On the daily analog Bitcoin Bitfinex chart, you can see some of the formations taking place a bit better. There has been a slightly increasing volume over the past few days still and if price does break either direction, it could paint another day of escalating volume.
I think worse case scenario on the daily chart for right now would be a total inverse and opposite reaction on the pitchfork back down to the $6,100 lows. Maybe it wouldn’t go that far and only to the median line of the pitchfork.
What I don’t like is when comparing the price to the RSI indicator there is no bullish divergence forming yet. A break back down to the median of the pitchfork could possibly provide that opportunity.
There is bullish divergence on the MACD still as I have circled in black and connected with a pink line showing the higher lows and you can see price over that same period is providing lower lows.
Hopefully, there will be some more volatility by tomorrow with increasing volume. The key here is if you are trading to keep your stop losses tight and do your own research, because there is potential for price to break to the upside and then back to the downside quickly. Have a good evening.
-More on Vanddar.com
Price is still in this red down-trending channel on the upper band of the pitchfork and while it’s showing signs of wanting to make a breakout to the upside there are many bearish cases to be made too.
The light blue line that is wiggling across the snapshot is the 50 hour moving average and just as before price has been hugging, testing and retesting this line for the past 12 hours constantly.
This pricing movement is reminiscent of the bear flag that was painted on June 8th with the 50 hour MA battle and the subsequent breakdown from $7,600 to $6,100. Price is still on the bull side of the 50 hour MA and I am betting there is at least an attempt to move outside the pitchfork over the next few hours. Once again, the volume is going to be key to see if the bulls can push price significantly higher.
If price can’t make a close above the $6,825 level, which is the upper black trend-line on the bearish wedge running up through the pitchfork, then I can see price heading back to $6,475 near the bottom range of the bearish flag and the outside of the 1sd blue channel on the pitchfork. I have marked it with a target.
On the bullish case, making a higher high above the blue horizontal line at $6,852 will be critical over the next 24 hours. There are many different patterns that could take place here, but I find the bullish flag between the pink lines also compelling for a potential pop to the upside. The upper yellow line of the bearish flag at $6,950 is a decent start for now.
The RSI is relatively neutral for now and could go both ways, and I am liking the look of the MACD which has the histogram starting to trend upwards and blue trigger line starting to curl upwards bullishly as well. Even when the trigger line crossed bearishly under 0 on the indicator earlier today there was very little follow-through from the bears, so it appears upward first is the next target.
On the daily analog Bitcoin Bitfinex chart, you can see some of the formations taking place a bit better. There has been a slightly increasing volume over the past few days still and if price does break either direction, it could paint another day of escalating volume.
I think worse case scenario on the daily chart for right now would be a total inverse and opposite reaction on the pitchfork back down to the $6,100 lows. Maybe it wouldn’t go that far and only to the median line of the pitchfork.
What I don’t like is when comparing the price to the RSI indicator there is no bullish divergence forming yet. A break back down to the median of the pitchfork could possibly provide that opportunity.
There is bullish divergence on the MACD still as I have circled in black and connected with a pink line showing the higher lows and you can see price over that same period is providing lower lows.
Hopefully, there will be some more volatility by tomorrow with increasing volume. The key here is if you are trading to keep your stop losses tight and do your own research, because there is potential for price to break to the upside and then back to the downside quickly. Have a good evening.
-More on Vanddar.com
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