A comprehensive technical analysis of Bitcoin’s price action across multiple time frames suggests a potential downward movement in the near future. This analysis is based on patterns observed on the 1-hour, 4-hour, daily, and weekly charts.
1-Hour Chart: Rejection at $30,000 and a Retest of Lower Levels
Bitcoin’s brief spike to $30,000, fueled by false news of a BlackRock Spot ETF approval, was swiftly rejected, forming a three-wave pattern. This pattern suggests a move to retest lower levels, particularly in the $26,400 to $26,950 range.
4-Hour Chart: Momentum Shifting Downward
The momentum on the 4-hour chart is shifting to the downside, indicating a potential continuation of the downward trend. This observation aligns with the bearish outlook derived from the 1-hour chart analysis.
Daily Chart: Overbought Conditions and a Larger Three-Wave Pattern
On the daily chart, Bitcoin appears to be in a larger three-wave pattern to the downside, with potential targets of $22,170 to $23,488. Additionally, overbought conditions on this time frame suggest a potential reversal and a shorting opportunity.
Weekly Chart: Weakness Above the 50 EMA
Despite being above the 50 EMA on the weekly chart, Bitcoin exhibits weakness with higher highs and higher lows. This pattern suggests a potential move to the downside, possibly breaking down to $20,000.
Overall Conclusion: Caution Advised Amidst Potential Downward Movement
In conclusion, the technical analysis across multiple time frames suggests a potential downward movement for Bitcoin’s price. Traders are advised to exercise caution, especially when considering longer-term positions. It is important to note that this is not financial advice, but rather a personal opinion based on technical analysis.