Bitcoin Price Signals: Prices are pointing down
|One of the most problematic scenarios for technical analysis is low volatility. Getting to the point, the absence of trend compresses both the price range and all the tools that are within our reach.
At this point, all we have to do is throw lines and wait, like a fisherman waiting patiently for the fishing rod to start vibrating. So today is what I'm going to do, draw lines, mark signal levels and wait for the price to break somewhere.
Do you want to know more about my technical setup?
BTC/USD
The 4-hour chart leaves us, after drawing the trendlines, a higher signal level at the price level of $6,522. If the BTC/USD exceeds it and closes above it would be bullish in this same time frame. On the lower side of the price, the signal for this temporary range is $6,254. A close below this level would give a bearish signal in this same range.
On the one-hour chart, the levels are logically much closer. On the bullish side of the price, the signal stands at $6,458 and a close above would be a flag in this hourly range. On the downside of the price, the signal level is at $6,405.
ETH/BTC
I include the ETH/BTC analysis because I consider it a key pair when validating the general trend of the Crypto market.
The graph of 4 hours shows, after the drawing of the trend lines, a higher signal level at the price level of 0.0333 ETH/BTC. If the pair goes above and closes above it would be bullish in this same time frame. On the lower side of the price, the signal for this temporary range is at 0.0309 ETH/BTC. A close below this level would give a bearish signal in this same range.
On the one-hour chart, the levels get much closer as is logical. On the bullish side of the price, the signal is at 0.0318 ETH/BTC and a higher close would be a flag in this hourly range. On the downside of the price, the signal level is at 0.0315 ETH/BTC. This level is currently being breached, so an analysis in a shorter time frame to confirm the close would signal a bearish entry.
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