Bitcoin drops into weak zone on daily

Further to our previous article, the lefthand chart below shows the daily heikin ashi chart of BTCUSD. Heikin ashi (HA) candles are trend-following, and it's noteworthy that the BTCUSD HA has turned red and has headed down. It is currently trading in BTCUSD's bearish zone, between the lower blue and red bands. The chart on the right is the BTCUSD hourly time frame. Momentum here has been down as per the bearish trend-following indicators (the green EMA being below the orange EMA) and the low stochastic reading, which has oscillated around 20. Price action doesn't move straight, and shorts may look to profit take given that price is at the S1 support pivot. However, any rallies at this point will need to contend with resistance at the central pivot (P) and R1 pivot resistance levels. I.e., price appreciation will be viewed as suspicious until proven otherwise. In our opinion, these will be targeted by shorts, making bounces limited in scope.

Featured Image by Gerd Altmann from Pixabay

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