What's up world? Welcome to this update analysis on Bitcoin! Let's get right to it! You can see that BTC -0.84% is falling to the 50 EMA (in orange) and the 200 EMA (in purple) as they converge just below, forming what should act as major support. If these two levels are broken, a deeper drop to the rising green dashed trendline should ensue. You can see that BTC -0.84% appears to be building an inverse head and shoulders pattern, but we need to see more evidence of the development of the right shoulder to know for sure. For all we know, this thing could just continue to fall. So to know that the right shoulder is developing, we need to see a meaningful reversal to the upside. If we happen to fall below the green dashed trendline , and confirm below it, the hopes of a bull market will be looking grim. This action is super critical. If we happen to rally back up, and form this hypothetical right shoulder, it would be wildly bullish for bitcoin -0.84% . You can see that the upside potential would be enormous, but let's first see if the right shoulder actually develops. The sell side volume that brought BTC -0.84% back into the downtrend channel was about 2X the normal average — not overly impressive, but it was substantial. The MACD has formed a bearish crossover and is expanding to the downside, signaling a potential for lower prices. BTC -0.84% has already gotten really close to the 50 EMA as I write this, but it hasn't actually touched yet. The red volume , and plummeting momentum suggest that further downside may be in the cards, but the convergence of the 50 EMA and 200 EMA stand in the way. That level is now a very significant spot. If it falls, we could see some rapid selling, since two important levels will have been surpassed in one fell swoop.
-This information is not a recommendation to buy or sell.
