Is Bitcoin Now Bullish or Bearish at $7K? Here’s the Scorecard
The price of Bitcoin (BTC) airtight the 2d week of Dec at $7,111, downwardly 5.44% for the week with v of the seven days being days of decline. So far on Mon, Bitcoin is trading down around 0.viii% and currently holding above the $7K handle at $7,055.
Bitcoin dominance remained apartment throughout last week and remains at around 66.5% of the total cryptocurrency market cap of $193 billion, illustrating that all other majors followed Bitcoin to the downside over the final 7 days.
With Bitcoin finding its terminal lows for 2022 exactly 365 days agone, nosotros will explore how Bitcoin is looking 1 year on, up almost 120% on the previous year.
Cryptocurrency marketplace 7-day view. Source: Coin360
Weekly chart
BTC USD Weekly chart. Source: TradingView
Chart Structure / Support / Resistance -ii: Bearish
- At that place is a articulate 24-calendar week downtrend which began in July — bearish
- Multi-week support of $7,600 was lost 4 weeks ago and has now turned into resistance for 3 weeks — bearish
- Bitcoin has found initially strong support at an old support level of $6,400, which bounced xx%; however, the cost has been in decline since — neutral
Central Moving Averages +1: Bullish
- The 50/100 week moving averages are crossed bullish, which has previously prompted long term sustained upward moves for Bitcoin price — bullish
- Toll is trading below the bullish cross and finding resistance in both the 50 and 100 Week Moving average — surly
- Bitcoin is trading to a higher place the 200-week moving average, which is also trending higher — bullish
BTC USD Weekly nautical chart. Source: TradingView
Moving Average Convergence Divergence (MACD) -1: Bearish
- The MACD is below zero meaning that the exponential moving boilerplate (EMA) of the 12 and 26 are crossed bearish — surly
- At that place are college lows on the histogram that is in deviation to lower lows in price, which is considered bullish deviation; but this is unconfirmed until there is a bullish cross on the MACD meaning it is relatively positive, simply overall neutral
Relative Forcefulness Index (RSI) -1: Bearish
- The RSI, a momentum indicator, is trending beneath 50 — surly
- The tendency appears to be weakening to the downside only is too early to call bullish — neutral
Volume and On-Residual Book (OBV) +i
- Volume has been decreasing since June — in a downtrend, this is typically viewed every bit bullish
- OBV has flattened out, illustrating that cumulative volume to the downside is losing momentum but currently no bullish divergences or breaks to the upside — neutral
Weekly Conclusion -2: Bearish
Overall, Bitcoin is up a pregnant amount year-on-twelvemonth and, as such, information technology is non a surprise that long view moving averages are crossed bullish. Nevertheless, the momentum indicators in the RSI and MACD, which look at more recent price action, illustrate that momentum remains to the downside although it is starting to show signs of weakness. This weakening surly momentum is also reflected in the declining volume.
Overall, the weekly nautical chart is conclusively bearish until there is a breakout in volume and a shift in price direction.
Daily chart
BTC USD Daily nautical chart. Source: TradingView
Chart Structure / Support / Resistance -two: Bearish
- Bitcoin enjoyed a strong 20% local bounce off support at $6400, which retested previous back up — bullish
- The retest of the $7,600 level resulted in a false breakout across resistance (formerly support) — surly
- Since the simulated breakout, Bitcoin has been consistently recording lower highs and M-summit pattern — bearish
Key Moving Averages -3: Surly
- All key daily moving averages are trending down — bearish
- Price has been trading beneath all iii key moving averages — bearish
- The decease cross of the 50-200 DMA currently shows no sign of reversal — bearish
BTC USD Daily chart. Source: TradingView
Moving Average Convergence Divergence (MACD) 0: Neutral
- MACD is below zero meaning that the EMA of the 12 and 26 are crossed surly — bearish
- The MACD is crossed bullish with its signal line just is showing some signs of momentum slowing down so remains only marginally bullish
Relative Forcefulness Index (RSI) -1: Bearish
- RSI is trending below 50 — bearish
- The tendency remains to the downside — bearish
Volume and On-Balance Volume (OBV) +1: Bullish
- Every bit pointed out with the weekly chart, volume continues to decline in a downtrend and considered bullish
- There is a bullish departure on the OBV where it is recording higher lows while the toll is recording lower lows; this is relatively rare — bullish
- OBV trend Remains down — bearish
Daily Conclusion -5: Bearish
Overall, the daily nautical chart is unsurprisingly more surly given the contempo toll action with a relief bounciness off back up within a downtrend. On a daily time frame, Bitcoin is starting to show some signs that the downtrend is weakened, particularly in volume, though without a clear immediate sign of reversal.
4-60 minutes chart
BTC USD four Hour chart. Source: TradingView
Chart Structure / Back up / Resistance -2: Bearish
- Sustained decline with rejection wicks since the failure at $seven,250 — bearish
- Sustained lower highs and lower lows — bearish
Key Moving Averages -ii: Bearish
- All key moving averages pointing to the downside — bearish
- Price below all central averages — surly
- Forming a base of operations above the previous area of clear demand in the $half dozen,000s — bullish
BTC USD 4 Hour chart. Source: TradingView
Moving Average Convergence Divergence (MACD) +2: Bullish
- MACD is below nil — surly
- MACD crossed bullish with its signal line — bullish
- MACD has bullish departure on both the histogram across three periods and the MACD line itself — bullish
Relative Strength Index (RSI) -2: Bearish
- RSI is trending below 50 — bearish
- Trend remains to the downside later a bounce from oversold conditions — bearish
Volume and On-Balance Volume (OBV) +3: Bullish
- Local volume decreasing from the rejection at $7,600 into area of demand — bullish
- There was a bullish difference in the OBV where the it is recording higher lows while price is recording lower lows — bullish
- OBV attempting to resolve trend overall to the upside — bullish
4-hour determination -1: Bearish
The 4-hour chart shows that there may be a proficient risk of Bitcoin recovering some footing early in the week. This would likewise fit with narrative around the CME gap at $seven,240 needing to exist filled later the weekend.
vi-calendar month downtrend remains but bears losing steam
Overall, tallying up the total scores for each department we go negative 16 (where a negative number is bearish and a positive number implies bullish sentiment). This suggests that Bitcoin remains overwhelmingly in a local downtrend divers by the last 6 months.
At that place are early on signs of the bears running out of steam across all timeframes, which is mainly due to the declining volume and approaching areas of previous buying interest. With the 2022 bottom existence 365 days ago, a similar narrative was existence pushed at the time and information technology was not until a few months later on that a bottom would be confirmed.
With five months to go until the halving, buyers may look to accumulate around these levels and the start signs will exist visible in the book, coupled with sideways price action, which is what speculators should be focused on attempting to place in the acting period as the downward trending price structure will take some time to resolve.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. Y'all should carry your own research when making a decision.
Source: https://cointelegraph.com/news/is-bitcoin-now-bullish-or-bearish-at-7k-heres-the-scorecard
Posted by: hallplover.blogspot.com
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