With all the headlines it is safe to say that there is a bearish sentiment among the mainstream media/analysts right now. While the market is still in bear mode no doubt, in my opinion there is a possibility of a break higher this week, lets take a look.
As I mentioned in my previous reports, critical support for the Bitcoin market is at $7200, it has seen quite a bit of action since Feb. The RSI is signalling oversold conditions on the 1 Day candle chart, a clear indication that open interest is building in the market.
It is important to note that the momentum is clearly still bearish, volatility in the market is quite high and the $7200 support zone (my opinion) could very well extend to $6800. With that said volume is quite poor, if the bears are going to rekt Bitcoin some more I want to see that selling pressure.
I know there are a lot of calls saying we are going to $5000 and even $3000, here is my personal view on the matter. Critical support is around $7200, psychological support is at $7000, if that fails we can expect even lower prices.
Traders that are going long here might set close stop losses or a bit more lose to around $6500 – $6800. Like I mentioned before, picking bottoms is a bad habit and a good way to get rekt in any market. Most trades here should be considered high risk.
I spotted a possible divergence on the 4 hour chart, one of the reasons for my crazy claim at the start of the report, lets take a closer look.
Even though it is just a slight divergence, it is there none the least. Should the RSI continue to tick higher, with confirmation from our other indicator, there is a good probability that the market will play catch-up to the momentum indicated.
A possible bounce here can take us back up to $7400 and maybe $7600 again, should this happen it is important to be mindful of the price action. For a safer entry in the market it would be safer for traders to be patient and see where the next bout of momentum comes from.
I hope you enjoyed the report, feel free to chat to me and our trading community on Discord.