Since months, BTC has been ranging within a region. There is no clear direction on it right now. That being said, looking at the charts, it seems that BTC is going to drop.

- Market structure: Although market is in a range, it has been creating LH’s and LL’s in the daily timeframe. It is inevitable to suggest otherwise than BTC being in a downtrend right now. Unless the range of $42,500 is breached to the upside, the trend remains bearish for now. The resistance we have within the range is at $35,000, where other factors confluence as well.

- Trendline: Earlier, the descending trendline, was tested to be breached, but it was invalidated as the candles did not have force and moved back below the trendline, opening and closing.

- Retracement: The marked resistance is at $35,000, which is in confluence with the retracement level of 50%-61.8%. This region may be an impacting region to push down the BTC.

- EMA's: EMA 200 and EMA 50 are on a verge of a death cross on the Daily. Once this is happened, market is confirmed to be in a bearish trend. Both EMA’s are above the current market prices.  At the resistance level, we may witness a retest of the EMA 50, hence, giving us a third confirmation.

- RSI/CCI: Both oscillators are in a bearish region and have the room to go further down, to the over-sold region. There are no divergences of any sort. Only confirmation we have on these oscillators is the bearish region.

- Bollinger Bands: Market tested the lower band, started hovering towards the upper band. The upper band is resting at the resistance level. These will confluence with other parameters as well. Therefore, being tapped by the upper Bollinger band will commence a 4th confirmation.

Technically, BTC has high probability to be shorted in the coming days. But, since cryptocurrency is in early days of being in mainstream adoption, the technicals can be breached easily.

Bitcoin in accumulation phase

Jul 24 2021

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