Over the weekend, Bitcoin moved mostly between 28 500 USD and 31 000 USD. So far it has failed to make a new high above 31 411.48 USD; however, there is still some room for more upside before the fall we continue to forecast. Accordingly, we still remain bearish on Bitcoin as we expect it to make a new low below 25 000 USD. At the moment, we will pay close attention to the U.S. market indices and their ability to move higher, which we expect to lift up the price of Bitcoin in the process. In our opinion, that would be the last lift-up for BTC before another breakdown. However, that does not change our opinion; we still think that the current rally is a “dead cat bounce”

Illustration 1.01

Bitcoin fully retraced to its 10-day simple moving average (white line) and then started to fall.
(20-day SMA – blue line, 50-day SMA – red line)

Technical analysis – daily time frame
RSI left the oversold area; we will pay close attention to it. MACD shows signs of flattening. Stochastic is bullish . DM+ and DM- show the presence of the bearish trend . ADX contains a high value suggesting peaking conditions or extreme strength. Overall, the daily time frame is substantially less bearish than a week ago.

Technical analysis – weekly time frame
RSI , MACD , and Stochastic are all bearish . The same applies to DM+ and DM-. ADX increases. Overall, the weekly time frame remains bearish .

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.