At the time of writing Bitcoin is at 9546$ - all of that happened after we failed to break the 12,000$ level. Consequently we were rejected by the 50-day Moving Average, which resulted in breaking the 8-day EMA and 21-day EMA. Everything I mentioned above is bearish and to add to this case we should take a look at the weekly chart.
We are on path to finish at the lows for the week. If we look at the chart above, we are clearly in a downtrend on weekly and the failed breakout at 12,000$ was an important piece of the bearish puzzle. On thih timeframe the first big support is at 8000$ and by the looks of it, it is a very solid one.
A lot of Technical Analysts are talking about the "Inverse Head And Shoulders" formation, but my opinion is that it is very early to talk about it. If we complete the right shoulder I will do my best to cover this scenario. Another thing to note is that volume is extremely low today.
If todays bar turns green and we continue with a green bar tomorrow, this will definitely make me feel a lot less bearish. But still facts are facts - bulls don't have control on the situation for now.
What's Next ?
- If Bitcoin continues to fall, the first major support level is the 200-day (8505$)
- If Bitcoin starts to climb, first resistance is at 10,100$ and another one is at 10,400$
- On the weekly first major support is at 8000$