Bitcoin produced a spinning top on the daily chart yesterday. The day before yesterday’s candle was a strong bearish candle. Thus, yesterday’s candle may be counted as a continuation of the bearish move. Today’s intraday price action has been bullish. It means the price has been having an upward correction on the daily chart. Let us have a look at the chart and what the price action suggests.
The Daily Chart
Yesterday’s candle has long spikes on both sides of a thin green body. Since the day before yesterday’s candle set a bearish tone, the price may go towards the South with any intraday breakout as far as the daily chart is concerned. Today’s intraday price action has been bullish; let’s find out what the H4 chart suggests.
The H4 Chart
The H4 chart shows that the price made a breakout at the level 9881.30 and came down to the level of 8999.50. Then, it started having a correction and got held by the breakout level. If the level produces an H4 bearish reversal candle and makes a breakout at the lowest low of the wave, then the price may head towards the level of 8500.00
The Bottom Line
Cryptocurrencies have been on a roller coaster lately. Overall, most of them have been bearish. The day before yesterday, Bitcoin technically looked good to get bullish. The H4 chart and its price action showed that the price made a breakout at a down-trending trend line. The price came down instead with a very commanding bearish daily candle. On the daily chart, it seems that a double top is being formed. The price has breached the neckline as well. One more daily bearish candle from the neckline level may push Bitcoin down a lot. This is what trading is all about. Just two weeks ago, it seemed Bitcoin was skyrocketing. Here we are now; Bitcoin sellers are roaring to dominate.