Understanding the Chart Indicators

  1. Moving Averages (MA):

    • MA (7): $97,535.05 (yellow line)

    • MA (25): $96,454.92 (pink line)

    • MA (99): $99,712.51 (purple line)

    These moving averages represent short, medium, and long-term trends.

    • The price is below all three MAs, indicating bearish momentum. The MA (7) is pointing downward, suggesting short-term selling pressure.

  2. Volume:

    • The recent red candles are accompanied by increasing volume. This shows that the selling pressure is strong and traders are actively closing positions.

  3. Price Action:

    • Bitcoin recently hit a local resistance at $99,963.70, followed by a sharp drop to the $95,843.38 range.

    • A support level is visible near $92,232.54, which could act as a bottom if the price continues downward.

  4. Indicators in the Bottom Panel:

    • Today’s Price Change: -2.93%, reflecting bearish momentum.

    • Short-Term (7 days): -8.37%, showing consistent downward pressure.

    • Mid to Long-Term (90–180 days): Positive growth indicates broader market support; however, it may not influence the immediate trend.


Key Observations for Next 4 Hours

  1. Resistance vs. Support:

    • The current resistance is around $96,454.92 (MA 25). If BTC fails to break above this, it will likely test the lower support zone near $92,232.54.

  2. Volume and Momentum:

    • Rising volume during a price decline signals bearish control. Unless buyers step in with high volume, the trend is likely to remain downward.

  3. Trend Projection:

    • Based on the chart, BTC shows a bearish trend for the next 4 hours. If the price breaks below $95,000, expect further downside.


Should You Trade Based on This Analysis?

If you’re considering a trade, here are the recommendations:

  1. Short-Term Traders:

    • A short position (selling) could be profitable if BTC continues to drop towards $92,232.54. Use a stop-loss slightly above $96,500 for safety.

  2. Cautious Traders:

    • Wait for confirmation of direction. If the price breaks above $96,500 with strong volume, it may signal a short-term reversal.

  3. Risk Warning:

    • Trading is inherently risky, and trends can change due to unexpected market conditions. Always use proper risk management and only trade with funds you can afford to lose.

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