Crypto Analysis | Bitcoin Short Term Outlook

Good day Hiveians!

Join me in analyzing the crypto markets!

 

Normally I look at the big picture, but this time let's have a look at what is happening currently for bitcoin.

These are the main trend lines for the 4h chart. As mentioned before the blue thicker line is of great significance as this has been the established trend for the last months. As you can see it has been breached, weakening its support. In fact for BTC/USDT the support has returned into a resistance (it is different for BTC/USD, see below).

Bitcoin has also always moved in a 1-2-3-4-5 pattern for its correction as seen in these paths. This would strongly indicate another "5" for the current pattern. Support would come from the previous 2 lows at around 53k.

After that there has always been a strong impulse wave upwards. However, there would be a difference: The blue thick support line would continue to act as a resistance which could hinder a strong upward trend.

For BTC/USD it is interestingly a bit different. In this chart we haven't breached the blue line a second time. This is an important moment: if it fails here as well a correction to 53k is all but guaranteed. The orange line in this chart is acting as the next major support line and as you can see price is "scared" to even get close to it.

Conclusion: the 1-2-3-4-5 wave pattern has been very strong in BTC. In the previous cycle we have also "flirted" with the blue line and have breached it sustainably. For these reasons I believe we could see a further correction to about 53k. However, it will likely not be too much steeper as the support form the "orange line" is strong.

 

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As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

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