With the recent developments in BTCUSD, we do not need to change our bearish bias. Therefore, our price target stays at 25 000 USD.
Negative fundamental factors Among the fundamental negative factors weighing on the higher price of Bitcoin is the prospect of the FED pursuing more rate hikes in the U.S. and its reduction of the balance sheet. We expect these factors to strengthen USD and, as a result, weaken BTCUSD. Additionally, we still foresee the weakness in the stock market to which the price of Bitcoin is highly correlated; with more declines, we expect risk appetite to drop even further.
Technical analysis - daily time frame MACD is flattening. Stochastic and RSI are bearish. DM+ and DM- are bearish too. Overall, the daily time frame is bearish.
Illustration 1.01 The picture above shows the bull trap we hinted at two days ago. Since then, the price of BTCUSD fell over 9%. Currently, BTCUSD trades around 29 400 USD; favorably, we would like to see a plunge below 28 600 USD. That would further bolster the bearish case for Bitcoin.
Technical analysis - weekly time frame RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Illustration 1.02 The picture shows how Bitcoin failed to penetrate the sloping resistance; instead, it reversed to the downside.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Such a scenario is possible and cannot be completely ignored, BUT recently the trades have changed a bit, so it's worth thinking about a plan in case of a change in the trend.
Tradersweekly
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@Solldy, What in particular has changed? Technicals and fundamentals remain bearish; just the retail/lay traders are overly bullish.
AbubakarSharif
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Expect BTCUSD to hit 24745.70 and also possibly 17755.21 !! Oh I like your charts, very clean and simple. Thanks.
@Investroy, I think so too. Just the bear market rally in stocks needs to fizzle out.
Future_Wei
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If you go bearish , I will go bullish, it is simple. :)) Where is your 20k target? lol
Tradersweekly
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@Future_Wei, Yeah, good luck. I am not interested in your lousy charts and flawed analysis, I told you that before. And it seems no one else is interested too. I would not object if it was done constructively, but it is not. Your bold statements and lies just make you look silly.
in the trend.