Bullish or Bearish?

SpyderCall wrote a column · May 8, 2022 08:58

Bitcoin has been stuck in a massive range with swings as low as $28,800 up to as high as about $71,000. Currently the price is approaching this long term range’s support level it has not dropped below since the beginning of 2021. If you were bullish on BTC then this support level might be a good place to enter. If you were bearish on BTC then you might want to wait to see if this level gets broken before entering into any short positions on bitcoin related equities.

When zoomed out on the weekly candles you can see a very long term trending support that bitcoin has rarely dipped below in the past. The price is approaching this trending support level. It appears that the price will meet trending support at the same area that a shorter term horizontal support. It would be safe to expect a strong move in price action near convalescing supports or resistance levels. Will bitcoin bounce off of these support levels or break down below and head further south towards the next long term support level around the $20,000 level.

When looking closer to the daily candles you can see that BTC bound within a shorter term range that the price has currently broken down below. This is a bearish look but when you look at the bigger picture BTC’s price has a little more room to fall before reaching longer term support levels. Another thing to note is that bitcoin’s price action is very volatile and the trends it forms on its charts are very sloppy. Bull traps and bear traps are plentiful for technical traders of BTC.

If we zoom in even further to the 4 hour candles you can see that bitcoin has a pretty clear 4 hour price channel. The price is currently near the bottom of this downward price channel so we could see some short term upside possibly. But things in the equity markets and cryptocurrency markets have been very bearish lately. So any upside may be short lived.

So with bitcoin approaching a couple major long term support levels there should be some big moves coming soon. Markets have been crashing around the world recently and many people are thinking more major downside is to come. Will $Bitcoin (BTC.CC)$ correct further and drop much lower below these long term support levels to the $28,000 level? Or will Bitcoin bounce off of these support levels and jump back up to the top of the long term range around the $71,000 level?

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solo invest : I think there will be a big move at those merging support levels. It’s tanking right now as I’m commenting this

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SpyderCall OP solo invest : no joke. its really tanking the past 30 minutes

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SpyderCall OP : it is at the 4 hour price channel's support area. This could be a reason for the volatility.

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solo invest : I’m looking at your price channel on the 4 hour candles. It should get some buyers to come in around here. Unless it completely craps on itself. The indicators look really bad on this timeframe though. It looks very bearish

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SpyderCall OP solo invest : agreed. looks bad at the moment. we will see if its a bear trap

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SpyderCall OP solo invest : and my support ,resistance, and trend lines i put on the charts are not always spot on. They are more as just an area of interest to pay attention to when price arrives in this area.

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solo invest : there is large volume on this drop

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人生如幻 :

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SpyderCall OP 人生如幻 : that's how thing are looking. Your support levels are right in the same area as mine. More downside.

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Basjan : Thank You i appreciate you sharing your findings. Something i can follow eventhough everything is way unsure anyway. As a newby i think im too late to get out now. Also thought may be a bear trap and Longs are down 10% so hopefully by next year / after the war my retirement money may come back.
Whoops i know. Thats how we learn....
...But still ouch for now...

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SpyderCall

Trade the trends via technical, fundamental, and macro analysis. Day Trades, swing trades, and long-term investments.

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