- Bitcoin price action gives mixed signals as bulls and bears both find opportunities.
- Ethereum price threatens a 20% drop while simultaneously creating a bull flag.
- XRP maintains critical support despite a powerful bearish continuation setup.
Bitcoin price is positioned at a level where strong signals can be made for both long and short biases. Ethereum price has a make-or-break level at $3,800. XRP finds and holds support against two key Fibonacci levels despite bearish Ichimoku conditions.
Bitcoin price is bullish on the weekly chart but bearish on the daily
Bitcoin price shows several mixed signals as it approaches the end of the week. On Bitcoin’s weekly chart, fears of the beginning of a bear market may have abated somewhat. However, bulls appear to want to hold the 50% Fibonacci retracement ($48,000) and the weekly Kijun-Sen ($49,000) as a near-term support level. The oscillators certainly help confirm solid support for the $48,000 – $49,000 levels.
The Relative Strength Index is currently testing the first oversold level in a bull market, 50. Most important, however, is the position of the Composite Index. When comparing the Composite Index swing low on the week of September 24th and its candlestick position to the current Composite Index swing low and its candlestick, there is a difference in structure.
The Composite Index shows lower lows while the candlestick chart shows higher lows. This is a condition known as hidden bullish divergence – a warning sign that the current, short-term downside movement in Bitcoin price is likely to terminate soon and resume its uptrend. The same hidden bullish divergence is also present in the Relative Strength Index, albeit to a lesser degree. The confluence of hidden bullish divergence in the oscillators while Bitcoin finds support on the candlestick chart gives credence to a likely incoming bullish reversal.
BTC/USD Weekly Ichimoku Chart
However, some bearish warning signs for Bitcoin price do exist. While the weekly chart is more important and more relevant when compared to the daily chart, broad trend changes occur on faster timeframes before they occur on more extended time frames. The daily chart could be hinting at a shift towards a bear market.
On its daily chart, Bitcoin is currently in an overwhelmingly bearish trading environment within the Ichimoku Kinko Hyo system. Bitcoin price is below the Cloud (Senkou Span A and Senkou Span B), the Kijun-Sen, and the Tenkan-Sen. Future Senkou Span A is below Future Senkou Span B, and the Chikou Span is below the candlesticks and in open space. Every marker for a bearish Ichimoku chart is present.
BTC/USD Daily Ichimoku Chart
The shaded area on the chart above is the most significant nearby threat for Bitcoin price. There is a significant gap between two high-volume nodes in the 2021 volume profile between $47,000 and $33,000. Bitcoin is just barely holding onto that final support zone.
