Bitcoin Retraces or Going A Bit Higher First?

4 Des 2020

Hello my fellow cryptocurrency trader, how are you feeling today?

I've been saying lately that Bitcoin has been tough on TA.
What's this means is that some of the signals that are usually very accurate tend to be ignored.

A peak/top is something that sometimes isn't 100% clear right away.

We can see Bitcoin reaching a peak and falling strong the next day... This can give a clear signal of the bears entering the market and prices starting to drop, but when you see a new peak being hit but nothing happens next, you get the mixed signals situation I explained on the ETHUSD chart (click here to read it

).

Regardless, I can still read this chart for you.

We looked at Bitcoin (BTCUSD) on the monthly timeframe... (you can read it here

)

A new potential All-Time High but also the possibilities of seeing prices drop in the first half of the month before any additional growth.

Now we are looking at the daily timeframe, we have multiple bearish signals starting to develop which can warn us of an upcoming drop.

We have a bearish divergence on the MACD And RSI.
This bearish divergence started showing around late Nov.

When we look at the MACD, the MACD line is below the signal line while trending lower with a red histogram.
And also the RSI, even though strong, it is starting to trend lower.

We also had a strong bearish candle on Nov. 26.
These are some of the early bearish signals.

In favor of the bulls (green)

• We have prices trading above EMA10.
  
• Low volume, bears still showing no strength.
  
• A very strong and clear uptrend.
  

Price action

If Bitcoin breaks below EMA10 ($18717) daily we will easily see ~$16000 being hit next...

But if instead, no bears show up, we will have another jump before the next correction takes place.

Here we are looking at both scenarios... The bear's (red) perspective is very likely but the bulls (green) are still on top.

Let me know in the comments section which altcoins you would like for me to chart/read/share next...

Thanks a lot for your continued support.

Namaste.