Cryptocurrency has been in a downward spiral since few months. The trend is seemingly bearish on all higher time frames, but the Daily and the H4 is still looming around in a range. The support and resistance areas are $17500 and $22500 respectively. Right now, market is tapping the resistance level in a downtrend. This resistance level will act as rejection zone with the price action. If the market rejects this level, only then we will be going short on this pair and ride it all the way till the support level.

In a rang bound market, trendlines and retracement levels do not pin point a clear direction. As the bitcoin is in a range bound market in a downtrend, we do not particularly see the need to use these factors in this setup.

EMA 50 is bearish. The EMA is tapping the prices near about the resistance level and has the potential to reject the market at the resistance level. That being said, the EMA is in confluence with the resistance level. It might wick pass through the EMA 50. It will be our catalyst for a short setup.

RSI is at 60 at the moment. We will have a decent setup if the RSI forms a bearish divergence in the over bought area. If the divergence is formed at the resistance level, this level will be a strong area for a bearish movement downwards.

Ranging Bitcoin in a downtrend

Jul 16 2022

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