Understanding the Chart Indicators
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.
Volume:
The recent red candles are accompanied by increasing volume. This shows that the selling pressure is strong and traders are actively closing positions.
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.
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
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.
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.
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:
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.
Cautious Traders:
Wait for confirmation of direction. If the price breaks above $96,500 with strong volume, it may signal a short-term reversal.
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.