The market structure on BTC is bearish after market broke the support at 58,000, which is now the resistance. This resistance will act as a catalyst to drive the market down and we can take a short position at this resistance. The market started forming LL’s and LH’s after it broke the 58,000 support level. Above this resistance, we have a resistance of 65,000, which will also form a head and shoulders pattern.

The ascending trendline has been formed. BTC is still above the formed trendline. Once this trendline is broken out for sells, we will wait for the candle open and close below this, which will then validate the breakout sell.

At the resistance level of 65,000, we have a confluence of the golden retracement level of 75-78.6%. This retracement having a confluence of the resistance level highlights the strength of this region. This impulse wave might head down towards the support level at 47,000.

EMA 50 has just been pierced and is now looking for a retest after testing the EMA. This EMA 200, rests at the support level which will be regarded as our profit target. From this EMA 200 retest, we can see BTC pound back hard up.

With the oscillators, both are in the bearish region. The RSI is at the 42 level, whereas CCI is at -60. Once the oscillators are neutralized, we will see market test the resistance level. From there onwards, we will have 2 confluence, which indicate the bearish setup

Bitcoin heading for a dip

Dec 03 2021

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