Thursday, May 4, 2023
However there is a bull case for Bitcoin as we are holding above the rising 200 week moving average, currently at 25935.
Also just about holding above the 18 month 23.6% Fibonacci level of 28176.
If bulls are lucky this is a bull flag pattern. However I am more inclined to see this as a head & shoulders topping pattern.
If I am correct then a break below the neckline at 27000 is a sell signal initially targeting 23000.
If we hold above 27000-26000 we can eventually target 31800/900 & the 100 week moving average at 33200/300.
This could mark a high for the recovery. The most optimistic target I can give you is 35750/36000.Failure to hold above 25200 is more negative for Bitcoin, especially bearing in mind the 18 month bear trend.
1 other thing to bear in mind is that I have a negative bias for crypto – I do not see it as an investment so take my negative outlook with a pinch of salt.
ETH is also holding above the 18 month 23.6% Fibonacci support at 1800, although it appears we keep getting drawn back to this level. As long as it holds we can look for a test of strong resistance at 2350/2400.
A break below 1700 puts the bears back in control, targeting 1610 & 490.