Bitcoin’s price has been moving sideways in recent weeks, with a slight bearish bias. In a recent video, Nick provides a technical analysis of Bitcoin on one-hour, one-day, and one-week timeframes, expressing a bearish outlook for its short-term prospects.
On the one-hour timeframe, Nick identifies a potential “megaphone pattern” or expansion in the fifth wave move. This pattern suggests that Bitcoin may experience a small bounce upwards but remain in a ranging market over the weekend.
Nick also notes that volumes on the hourly chart are historically low on weekends, which could further limit price movements.
On the daily timeframe, there is a looming “death cross” between the 50 EMA and the 200 EMA, indicating a bearish sentiment.
Nick also highlights the stochastic RSI on the hourly timeframe, which may show false flags and bounce between oversold and overbought conditions.
Nick suggests that Bitcoin needs to break above $28,588 to change the bearish outlook. Otherwise, it might drop to $22,693 to $23,874.
Nick discusses the possibility of Bitcoin testing $20,000, filling the CME Gap, and the importance of this level.
Nick also acknowledges a larger bearish scenario, where Bitcoin could drop to $10,000 or $7,000, citing technical patterns and historical support levels.
Nick’s analysis suggests a bearish outlook for Bitcoin in the short term. However, it is important to note that market conditions can change quickly, and investors should always do their own research before making any investment decisions.