Breaking News / Bitcoin / Analytics
Bitcoin (BTC) has seen some bullishness today that got the bulls hopeful about the price eventually breaking out of the falling wedge seen on the 4H chart for BTC/USD. However, there is still a lack of momentum for the price to see further upside. As long as the 61.8% fib retracement level is not tested, the possibility of another sharp decline remains there. So far, the bulls and the bears have been fighting for control but it appears that the market makers want to continue with the stop hunt for a while before we can see a trend reversal. There is room within the falling wedge to decline further. It is important to note though that it is very risky to be bearish on BTC/USD around current levels.
It is true that the trend still remains bearish despite the bullish setups we have outlined. We have discussed before how a falling wedge until broken remains just that. So, the price could go further down this wedge but sooner or later it will have to break out as it has before. The point is, we might see the market inflict further pain on the bulls and get the bears trapped in while doing that. Then when no one wants to buy Bitcoin (BTC) thinking it is going to fall to $6,000, we are likely to see the uptrend begin. At the moment, it is not a good idea to rush into bullish entries because we could see further short term downside follow. As long as the 61.8% fib retracement level is not tested, confusion remains within the market.
The daily chart for EUR/USD has displaced some healthy signs of further bullishness.