What happened yesterday shows that Bitcoin is still unwilling to take sides as the battle of short-term supremacy continues between the buyers and the sellers. A false breakout occurred after it breached 21677.65 higher but could not sustain the buying as it topped at 21816.73 before retreating lower till now. Presently, the market is battling to break below the current trendline support on the 4H chart which is lower than yesterday's level at 21344.89. A 4H candle close below it will add bearish credence to what the market would do today.
My preference has however shifted to the daily chart which gives a better insight into what the market might do today. The market is still moving in a tight bound on the chart, so caution is needed. Yesterday's market ended negative and created a Doji on the daily chart. This suggests a negative bias today as a reversal is possible within the sideways movement still seen with the last 7 candlesticks formed on the chart.
Regardless of that, the price action of the last two candlesticks is bearish, which makes me believe that Bitcoin might sell today. But this is provided it stays below 21690.67 (today's opening price) and breaks below 21310.16 (yesterday's low). The Stochastic oscillator is not a problem anymore, it is not oversold again just as MACD continues to be negative in favour of this bearish expectation.
Congratulations to those who read my speculation and perhaps use it in their trading plans yesterday. Bitcoin eventually find a path on the bearish trend which was my preferred bias for the day. My analysis of yesterday remains valid today but anyone should be careful of the oversold condition on the lower charts. The market might continue selling or wants to first retrace higher before continuing the selling, so be careful. The major supports in sight are at 18910.72 and 17625.00, which is the low of June 2022.My preference has however shifted to the daily chart which gives a better insight into what the market might do today. The market is still moving in a tight bound on the chart, so caution is needed. Yesterday's market ended negative and created a Doji on the daily chart. This suggests a negative bias today as a reversal is possible within the sideways movement still seen with the last 7 candlesticks formed on the chart.
Regardless of that, the price action of the last two candlesticks is bearish, which makes me believe that Bitcoin might sell today. But this is provided it stays below 21690.67 (today's opening price) and breaks below 21310.16 (yesterday's low). The Stochastic oscillator is not a problem anymore, it is not oversold again just as MACD continues to be negative in favour of this bearish expectation.