14.5 C
June 28, 2022
Image default
Guide & Analysis

Do we have a possible bearish pivot on Bitcoin?

Possible bearish pivot on Bitcoin on MA50

Bitcoin, despite a strong bullish trend still, begins to confirm a retracement after it closed below the 50-period moving average on 4/18. From then on, we had the confirmation of a break and now a retraction of that fall upwards, with a rejection, again, in the MA50.

In the first two red arrows, on 01/27 and 03/25, respectively, we had high pivot of Bitcoin playing at MA50. This pattern refers to a possible shopping area.

Certainly, the trader who bought these 2 taps made a very interesting profit. From the touch on 01/27, the price more than doubled in relation to the historic high, evolving from: $ 29,156.00 to a maximum of $ 64,899.00.
It is a very interesting strategy when the chart is in trend.

In contrast . . .

When the price breaks this average, for traders, it is a sign of possible ‘trend reversal’.

See in the third red arrow that the closing of the candle happens below the MA50. Even if the difference is minimal and there is still a strong shadow on the candle, indicating rejection, the pattern of closing below is confirmed by the price drop shortly thereafter.

From the historic high, we have a drop of over 9 thousand dollars reaching a minimum price of $ 47,044.01 and right after making a retraction upwards that makes a rejection exactly where? (Bingo!) – On the MA50 – forming a possible bearish pivot, reinforced by a candle doji almost touching the middle.

That hadn’t happened in many months

The last time the price “lost” the 50-period Moving Average on the daily chart was in early September 2020.
On that occasion, the price did not continue to fall and recovered above the MA50 as early as October, remaining the same since then until the last day 18/04.

Anyway, now, graphically speaking, if the pivot is confirmed, we have a possible return to the previous fund at around $ 47,000 and if that fund is lost, the next support is around $ 42,800.

Already a high, to return to the ‘bullish’ path, it is necessary to win the MA50 and remain above.
Many traders would see this break as a buy signal.

Analysis of CointradeCx
Click on here and make your registration simply and quickly.

Related posts

BTC, ETH, XRP – Has the correction period passed?

Shahrukh Ahmed

Bitcoin rising to $ 6,000 or falling to $ 4,000?

Shahrukh Ahmed

Bitcoin rises above $ 58K, ETH and BNB hit new historic highs

Shahrukh Ahmed

Leave a Comment