Bitcoin Technical Analysis: Short, medium and long term
Bitcoin Weekly Chart
The weekly chart is showing that more downside could be on the cards.
6270.01 is the main support on the downside and beyond that, the internal trendline might stem some losses.
If that support is broken then it could lead to some more capitulation based on the signals on the chart.
The MACD moving averages have also moved lower and in the past that was a very bearish signal.
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Bitcoin Daily Chart
On the daily chart, there is more of a descending wedge formation.
The negative point for the bears is the fact there is no obvious support in sight.
That means the support of 6270.01 is the next support for this timeframe too.
The sell-side volume is also much larger than the volume on the positive candles, this can be a bearish signal.
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Bitcoin 4-Hour Chart
On the 4-hour chart, 6526.00 looks like it could be a support level.
This was the bottom of the failed inverse head and shoulders formation in November.
The chart has consistently made lower highs and lower lows and shows no signs of changing anytime soon.
The MACD is also in a bearish phase but looks overstretched maybe after a small retracement the move will accelerate.
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Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
