Bitcoin – Bitcoin short-term price Evaluation: 29 November
Disclaimer: The findings of the next article are the only opinion of the author and shouldn’t be taken as funding recommendation
Bitcoin has began its rollercoaster journey but once more. This has contributed to longs worth billions being liquidated because of this. So long as we now have excessive volatility, we will count on this pattern to proceed with Bitcoin.
At press time, Bitcoin was buying and selling at $18,100, having recorded a 5.4% surge during the last 24 hours and a -3.3% fall over the earlier week. Right here, it was apparent, due to this fact, that the weekly timeframe would look bloody as a result of final week’s price drop.
Nevertheless, even after the drop, Bitcoin’s price has began to surge virtually in a parabolic vogue. Usually, parabolic surges find yourself with a 60% to 70% retracement, with the identical seen in final week’s drop too. The recuperation rally may also witness one thing related this week, however scaled down.
Bitcoin 1-hour chart
Supply: BTCUSD on TradingView
The hooked up chart highlighted Bitcoin’s parabolic ascent after a drop to $16,200. BTC’s price has managed to hit $18,250 [10%] in just below Three days. At $18,550, there’s a wall of sellers ready to dump Bitcoin. Therefore, we will count on a drop after the price hits this stage. General, the state of affairs appeared bearish for Bitcoin, one thing that requires a brief play.
Rationale
Along with the promote wall at $18,500, the OBV indicator has been forming a bearish divergence with the price since 27 November. This bearish divergence of price and quantity alone might be sufficient to tug the price down.
Moreover, the RSI indicator was near hitting the overbought zone. In contrast to on the upper timeframe, the momentum won’t be sufficient to maintain the price on this vary for a very long time. So, we will count on a drop as quickly because the price hits the overbought zone.
Whereas not current on the chart, each the MACD and the Stochastic RSI indicated a possible bearish crossover quickly.
Ranges to look out for
Entry: $18319.26
Cease-loss: $18635.75
Take-profit: $17537.92, $16869.82
Threat-to-Reward: 2.47, 4.58
