December 4, 2021

The decline is hardly over - technical analysis from November 22, 2021

Bitcoin rallied a bit over the weekend, but the price chart still looks pretty weak in my opinion. I AM I still expect to see some bullish divergence, which could form in case of further decline.

Weekly schedule

Chart executed in TradingView

Unsightly bearish weekly candlestick,covering a whole month of price action. I'm still waiting for a likely test of the $ 53K area as a key support that hasn't been tested so far. I have highlighted on the graph the structure that was formed a few months ago. It started with a similar weekly candle, followed by several weeks of decline before the bullish trend resumed. Not that there is any reason to believe that this should happen again; it's just that the initial candles are so similar that I decided to pay attention to what the development of a similar situation looked like in the recent past.

I'm still leaning towards the $ 53 levelthousand will be tested, which almost inevitably leads to the idea of ​​a probable "wick" going significantly lower and capable of seriously scaring some part of the market. There is no guarantee that this will happen, I just believe that the last weekly candle significantly increases this likelihood.

Daily chart

Chart executed in TradingView

Bitcoin Still Holds Support At $ 56.4thousand, but the situation looks precarious. Comparatively larger candlesticks of trading volume have been dominated by sales, not purchases, lately. A break below the 50MA looks like an important story. The price has held above it since October 1 and is now trading lower. The market also tested the breakout level as resistance. The last time this happened, Bitcoin was trading below its 50-day MA for several weeks. For many traders, the first sign of a reversal will be its reversal back into support.

RSI on the daily chart (did not show it here) has not yet reached the "oversold" zone, which will inevitably happen at some point.

Chart executed in TradingView

As a result of a hard reversal of the band priceThe Bollinger Bands seem to have begun to expand downward, and the price is following the lower border of the indicator, contrary to what could have been considered a more likely continuation until recently. These dynamics are noteworthy. To confirm the return to growth, we want to see the price exit from the lower band and consolidate it above the middle line.

4-hour chart

Chart executed in TradingView

As you can see, RSI during the last price movementsgrew, so any fall below $ 55.9 thousand is likely to be accompanied by the formation of a bullish divergence with the RSI, originating from the "overbought" zone. The potential for such a setup, in fact, can be observed on any timeframe from daily and below, albeit with different lows for confirmation.

I still expect a slightly larger price decline to form these divergences, which could potentially be an excellent reversal signal and fuel for upward momentum.

Traditional Markets

AAPL (Apple)

Chart executed in TradingView

Apple's price over the past few monthsformed several setups, and they all worked great. Now the AAPL has entered new pricing territories again, breaking through the $ 157.26 resistance and testing it as support. This means new highs.

By the way, this is a great example of how the KISS rule works.(Keep It Stupidly Simple), which is best not to forget about when trading the markets. I see Apple as a long-term investment and use every opportunity to strengthen my position.

Buy the declines when and if you get the opportunity, and don't lose sight of the long term.

BitNews disclaim responsibility for anyinvestment recommendations that may be contained in this article. All the opinions expressed express exclusively the personal opinions of the author and the respondents. Any actions related to investments and trading on crypto markets involve the risk of losing the invested funds. Based on the data provided, you make investment decisions in a balanced, responsible manner and at your own risk.

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