After weeks of huge gains, Bitcoin has finally slowed down and started consolidating after peaking at $10,500. The bulls were rejected from this level for a few days and the bears finally took over breaking the daily uptrend and setting a daily equilibrium pattern.
The last low was set at $9,350, a level that was broken and made Bitcoin touch $9,250 but only briefly. The lack of continuation after a break of the Equilibrium pattern shows that the bears do not have a lot of strength right now.
Additionally, every time the hourly chart has been in oversold conditions according to the RSI, the bulls bought the dip.
Bitcoin Price Short-Term Outlook
The short-term is definitely looking a bit more bearish now for Bitcoin as the bears have been able to confirm a daily downtrend and the price of Bitcoin has broken below both daily EMAs.
However, the lack of continuation does show some bearish weakness and the bulls could still easily come back.
The 4-hour chart is in favor of the bears right now although they have been able to create 2 bullish reversal candlesticks that are waiting for continuation within the next 4-8 hours.
The 4-hour RSI has been close to oversold conditions and the bulls are now looking to set a lower high compared to $9,675 and then a higher low in order to try to change the downtrend.
Bitcoin Price Long-Term Outlook
Zooming out, however, we can see Bitcoin is still extremely strong as the weekly chart has remained in an uptrend and is simply looking to set a higher low. If the bears can see more continuation, the bulls will look at the 12-period EMA as a support level.
Unfortunately for the bulls, Bitcoin basically set a double top here which could be crucial in the near future. They are definitely still in control but would certainly like to break this double top as soon as possible.
The monthly chart is forming a bearish reversal candlestick but it’s not confirmed yet. $10,500 could easily become a lower high and Bitcoin could set a monthly equilibrium pattern in the future, however, we would need to see a loss of the weekly uptrend in order to confirm that lower high.
Bitcoin also seems to be regaining some of its lost market dominance after dropping down to 60.9% from a 69% high. It is now at around 63.5% and climbing, this might indicate that Bitcoin is looking to take the lead again. Additionally, we also have the upcoming Bitcoin halving event which will certainly have a huge impact over Bitcoin.
Many analysts and traders believe the halving is not yet priced in while others say that it will only affect Bitcoin after the event happens. The recent Coronavirus outbreak has also been a huge factor as cryptocurrencies are usually regarded as safe havens and the traditional stock market has experienced a fairly significant crash recently.
The next few days will give us more clarity as to what direction Bitcoin and the whole crypto market are headed. If the bears can’t see any continuation tomorrow, the bulls are very likely to take over again and we will look at the $9,990 and $10,000 resistances.