After a hard start on August 15 , where we saw prices fall below $ 3900, the price was able to recover to $ 4,000, which seems to indicate the strength of the bulls. And it's not surprising considering how technically expanded the market for new ATHs to $ 4,400 and the fact that $ 4,000 is a psychologically significant figure that needs to be tested several times to make sure it's a long-term support before moving up. Despite the fact that we expect that the market will be "chopped" on both sides of 4000, we believe that the long-term trend remains bullish.
Image Credit: Bitcoin Magazine
Today, we use the 4th chart to view a short-term structure that shows mixed signals on several fronts. Please note that the price has flipped between 338.2% and 361.8% Fibonacci levels, which catalyzed a new ATH offer zone above the market, this is not a good sign for bulls. However, the structure of the short-term market was broken, 50 SMA does not come into play. In general, undoubtedly, the situation can be much worse than now, given the scale of the recent rally, but everything is not so good looking, to be honest.
Image Credit: Bitstamp
On the other hand, the volume of exchange, at present, seems to be dropping and the volume profile remains subtle below the market. Again, it appears that the longer-term bullish bias is still intact, despite a break of the previous low of $ 3,840, but it portends a fight in the coming days, as the bulls, over the next 24 hours, will try to keep the price above 50 SMA.
Let's return to the daily chart, which clearly shows the local top at $ 4,400, although in this context the sale would actually be relatively trivial. With this in mind, note that SCMR is trying to turn around today after the rollover in the lower area of the Fibonacci expansion, while 9EMA acts as a short-term support at faults below 4100. Also note, That the market structure remains quite encouraging in the medium term, all moving averages continue to grow higher, and the Ichimoku cloud continues to expand. So far, all this has confirmed that we are currently adjusting / consolidating from ATH, which means that there remains a bullish bias in the long term.
As for momentum and volume, at this time frame, oscillators are still overbought and can use some additional recharging, although MACD continues to be viable. I hope, That the bottom will appear in our renewed short-term area, if not, we will be ready for everything that the market will present us.
Despite the sharp price movement over the past 24 hours, we believe this is a viable and necessary pullback, given how far the market has already entered during the first half of this week. If the price can be recharged and consolidated, maintaining a key medium-term support of about 4,000, which in our opinion is a very good opportunity, then the bulls will keep everything under control and most likely there will be another breakthrough in the not too distant future. By that time we will take the right positions. If not, and this is the beginning of something more negative, then the bull market will pause for several months, until the market sells out the recent gains.
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