WEEKLY BITCOIN ANALYSIS 23/06/2020

BTCUSDT

Welcome to our weekly analysis of cryptocurrencies, where we will dissect the charts together to find potential trading opportunities! Needless to say, Bitcoin comes in at the top with 24h trading volume of $80,867,906 on BiKi Exchange, making up 18.73% of our total trading volume. Ever since the sharp V-shaped recovery from the lows of $3,000s in March, the bulls have been experiencing difficulties in breaking through the $10,000 resistance zone.

Weekly Analysis:

Bitcoin Weekly Chart
Weekly view

From the weekly perspective:

  • We can establish a significant resistance zone between $9896.44 and $10344.37 (formed from the highs back in October 2019).
  • We can observe that there have been multiple rejections from the zone since.
  • It is apparent that that there is a lack of buying interest, since the trading volume tends to decrease when the price is nearing the resistance zone.
  • Investing.com article on $13 million sell wall at $9,450.

Daily Analysis:

Daily view

Diving down to the Daily timeframe:

  • No 24-hour candles have been able to successfully close above the resistance zone mentioned in the weekly analysis.
  • Price have also broken and closed below the bullish trend-line that was drawn from since the start of the consolidation.
  • There is a possibility of a Head N Shoulders pattern forming, with a clearly defined left shoulder and head.
  • Narrowing gap between the 17 & 50 EMAs indicates weakness in the current bullish trend.

Technical Summary (Multi-Timeframe):

-data obtained from investing.com

Overview:

  • There are increasing evidence to suggest that the bullish trend for Bitcoin may soon be coming to an end.
  • Game plan would be to wait for the completion of the right shoulder, followed by an affirmative break below the neckline of the H&S pattern. *Patience is key*
  • Bearish conviction can be then further reinforced when the EMAs (17 & 50) performs a ‘golden cross’, coupled with the broken neckline.
  • Potential target would be around the $7750 support zone

Disclaimer: The above does not constitute as investment advice. Do note that trading cryptocurrencies (or any other financial market) involves substantial risk, and there will be a potential for loss. Your trading results may vary. Please practice the proper risk management to avoid risks of approaching account zeroing and liquidation.

Leave a Reply

Your email address will not be published. Required fields are marked *