Hi traders,
Bitcoin is showing strong bearish momentum which is best seen via the candlesticks and the bearish angle of the HMA (pink). BTC/USD could however restart the uptrend if it bounces at the horizontal support levels and round levels like 5k.
Another key factor for the uptrend is if candlesticks are able to rebreak above the HMA. A bullishly angled HMA could confirm the uptrend continuation.
BTC/USD broke below the bear flag patterns (dotted blue lines) as indicated in our analysis from last week. The breakout confirmation kick started a continuation of the downtrend channel. A bearish continuation is possible as long as price remains in the downtrend channel. Price would need to break above the resistance zone before a larger correction could take place (purple box). Price needs to reach the blue box before it reaches an area where an uptrend is likely.
This image shows BTC/USD while using our SWAT software. The red candles are still indicating that bearish momentum is control. A break above the 21 ema zone is needed before blue candles could appear. But the real uptrend could start if price breaks above the long-term MA (black arrow). Price is now challenging a long-term MA as well (blue arrow).
Good trading,
Chris Svorcik
Elite CurrenSea
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