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Bitcoin as been trading sideways for quite a while and only recently broke through the $9,000 price level that as served as a major support region for a while now.
This break saw bearish pressure enter into the market as the price started heading lower.
But even that bearish movement seems to have stalled as we see bearish volume dry up from the market and the Bitcoin price return to its sideways movement again.
Taking A Top-Down Analysis Approach
Well in this Bitcoin analysis, I will be taking a step back and looking at the bigger picture in order to fully understand what the Bitcoin price is actually doing and how best to trade it in the coming days.
I will also be analyzing the incoming price surge you should be watching out for and how to best position yourself to trade it.
A Longer-Term Outlook on Bitcoin
The first timeframe I will be looking at in my top-down analysis is the monthly timeframe.
This timeframe paints a very clear picture as to what exactly is happening to Bitcoin and why we have been experiencing a ranging market for a while now.
We can see the Bitcoin price has been moving within a channel, explaining why we have been unable to see that initial Bitcoin bullish trend fully return on the lower timeframe.
However, this pattern as completed and broken out giving us a high probability outlook that Bitcoin might rally and resume the bullish trend in the coming months.
The $10,000 Resistance Still Holding Price Back
For the bull run to be possible, the price must first break through the $10,000 resistance that I have been talking about on for quite a while in my daily Bitcoin analysis.
Until that resistance is broken, Bitcoin might just keep on ranging or selling off.
Weekly Timeframe and More Selling Signal
In the daily timeframe, Bitcoin is still trading within the converging channel we saw formed on the monthly chart.
So, even though Bitcoin is still overall very bullish on the monthly timeframe, the weekly timeframe is showing me that there is still a high probability for price to crash towards the $6,000 region of the base channel.
The Daily Timeframe
This selling signal is further pronounced in the daily timeframe where the Bitcoin price has been trading sideways and getting ready for a big move.
This move can either be to the upside or downside but there is a higher probability of price crashing to the base channel.
When To Expect This Price Surge and How To Trade It
To answer those questions, I will be using the RSI indicator.
Since the retracement started, the indicator as been trading in a converging channel, repeating what it did during the previous Bitcoin crash and giving us valuable hints that the sideways movement will be coming to a stop very soon.
Is This A Bearish or Bullish Signal?
While this RSI pattern might be a bullish sign, there is still a very high probability that the price might break to the downside in the coming days.
This makes it important for you not to enter trades overly biased in, only trade in the direction the market gives you.
To gain more information on how to partake in this coming Bitcoin Bear run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide and follow my daily bitcoin analysis. You can also check my top list of Best Bitcoin Exchanges To Trade With.
