Bullish Vs Bearish Bitcoin (Mixed Signals or Mixed Feelings?)

May 18, 2020

What is happening with Bitcoin (BTCUSD) now?
(Please hit LIKE to support this trade idea)

Looking at all the charts here on Trading View, we can easily say that we are having some really mixed feelings... Will prices go up or down?
What about the chart signals, what are they saying?

We have mixed signals because of how we read charts.
Some signals are stronger than others and this is important to keep in mind... Let's make a quick example.

We consider trading above EMA10 to be bullish, but it isn't the same to see prices move above EMA10 after a bounce off support while trending up vs a resistance level being hit and prices staying above EMA10 while trending down.

In both examples, we have prices above EMA10 but one can be considered bullish (bouncing off support) while the other one can be considered bearish (rejection at resistance).

Now, here we have Bitcoin (BTCUSD) moving higher until it finally faced resistance, this resistance is marked on this chart with a red line.

The trading volume is above-average but generally low, not what you would expect in a bull market.

Finally, the most important signal, BTCUSD is still trading within a "Lower High" compared to previous price peaks... Ever since June 2019, lower highs continue to persist.
We remain very cautious with Bitcoin unless a new high is hit.

We Go Bullish If...

The trendline above has been a major resistance/rejection point for Bitcoin's growth but another important level is the $10,000/$10,500 price range.

If Bitcoin (BTCUSD) can break above this level, we switch to full bullish right away.

If Bitcoin stays below... Feel free to join our SHORT below:

Remember to hit LIKE to show your support.

Namaste.