Bitcoin produced an Evening Star on the daily chart. The resistance level where the Evening Star has been formed seems to be a strong one. The price had reacted at the level heavily earlier. Today’s intraday price action has been bearish. The daily traders are eagerly waiting for a daily breakout at the lowest low of the current bearish wave to go short on Bitcoin.
Let us have a look at the daily-Bitcoin chart.
The Daily Chart
The daily chart shows that the level of 10683.55 is working as the level of resistance where yesterday’s candle engulfed day before yesterday’s Doji candle. If the price keeps pushing towards the downside and makes a daily breakout at the level of 9375.55, it would be a strong signal for the sellers to go short on Bitcoin. There is enough space for the price for travelling. The level of 7500.00 might come as the next level of support as things stand with Bitcoin on the daily chart.
Let us have a look at the H4-Bitcoin chart.
The H4 Chart
The H4 chart’s price action suggests that it has been bearish, but the price is right at a support level. It had bounced earlier at the level. It bounced today and yesterday as well. The level of support seems to be getting stronger here. However, the daily chart’s price action may help the price make a breakout at the support level. On the contrary, if the support level is not breached, the price may get into a horizontal range.
The Bottom Line
The H4 chart’s price action is a bit indecisive. On the other hand, the daily chart’s price action is very explicit. A daily breakout at the daily support shall attract the sellers to go short. Meanwhile, it all depends on the H4 price action. Let us wait and see whether it makes a downside breakout which may eventually help the daily candle makes a downside breakout at the daily support.