Today the prices of all cryptocurrencies have "recover" and maybe you are asking yourself: is time to buy? the answer is not not yet why? well i would like to explain the next TA about the price of Bitcoin.
In recent days has been spread news that Google will not allow cryptocurrency advertising of which this news may have been a factor that also caused a collapse in the price of cryptocurrency, now, after that bad news the price in general have recovered but within a downtrend, in time frames of 1 hour, 4 hours and daily the seasonality are still in a totally bearish trend, that means that the price is in a pullback, this is necessary for the downtrend continue down again. in the following chart with a timeframe of 1H I show my technical explanations of why a new projection will be presented downward:
First of all let´s consider some new fundamental news that may affect the price of bitcoin negatively, we have the G20 summit to be held this March 19 where it seems very likely that they do not have very good references on cryptocurrency, they would search maybe some regulation before them, then on the next chart of time frame of 1H we see that the price is in contact with the ichimoku cloud which works as a resistance that means there is a probability the price will have another projection on a downtrend:
It is possible that the price makes a false break in the cloud, where probably the price goes to $ 8761.7 USD per unit and then continue down again, you ask yourself, why at that price? well, technically if we draw the fibonacci retracement tool that level represents the 61.8 of a downtrend, so it is possible that the price falls again and if that happens it could be called a bull trap causing new investors to enter to buy in a false signal to buy.
If the price falls again, and we position ourselves in a short position, the possible profit taking would be in the price of $ 8083.9 USD per unit representing a 7.74% profit in case of the previously speculated event.
Disclaimer: Operating with assets may lead to the partial or total loss of capital, no recommendation is made to purchase or sell said assets, the decisions you make are at your own decision.