Bitcoin — Daily Update — Are Bulls Losing Steam?
Bitcoin is on its way to printing the second bearish candle in a row. Although this is absolutely fine after the recent pump, bulls must take care of the 63.5k area.
The 63.5k level has played a vital role as both support and resistance for the last months. A break and close below it can signal more (short-term) downside potential. In this case, the EMA200 comes into play again. Currently, the EMA200 sits at 58k.
However, I don't think it'll come so far. I expect a consolidation at the current level before Bitcoin tries to tackle the upper boundary of the bull flag.
Nevertheless, it is worth mentioning that if the candle closes at the current level, we have two bearish reversal candles, and therefore, we should be cautious about entering new trades!
From a technical indicator perspective, consolidation is still reasonable in order to have the momentum indicator return to neutral. Based on trade signals, we don't have any relevant signals for higher timeframes at the moment. Lower timeframes, like the 1H chart, indicate further bearish momentum.
The long-term scenario is still valid: a break of the bull flag to the upside, a new ATH, and 100k.
