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F&T: The trend of a lower degree turns neutral again

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Bitcoin (BTCUSD) continues to hover within the downward-sloping channel, and the trend of a lower degree remains neutral, as implied by the low value of the daily ADX and choppy price action. With these developments in place, the focus lies on support at $60,760 and $60,000; a breakout below these two levels will bolster a bearish case in the short term, especially a breakout below the latter. This case would also be strengthened by declining RSI and Stochastic on the daily graph, along with MACD’s failure to move into the bullish area above the midpoint. Contrarily, a bullish case would be strengthened by the rise in all mentioned indicators simultaneously, along with a breakout above the 20-day SMA and later the 50-day SMA.

 

The daily chart of Bitcoin (BTCUSD) shows the downward-sloping channel and two simple moving averages. 

 

The yellow arrow indicates a temporary fakeout above the important trendline; if Bitcoin breaks above it and manages to stay there, it will be positive for the cryptocurrency in the short term.

 

The image above shows simple support and resistance levels derived from peaks and troughs.

 

A pattern resembling an inversed head and shoulder is forming on the 3-hour chart of BTCUSD, potentially raising the chances for a small price surge if the neckline is broken to the upside.

 

Technical conditions

Daily time frame = Neutral

Weekly time frame = Neutral

Monthly time frame = Bullish

 

Bitcoin addresses

There have not been any notable changes to the number of Bitcoin addresses with balances exceeding 1,000 BTC; the same applies to the addresses with holdings exceeding 100 BTC.

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