Daily Report – Bitcoin and Market Update (April 13 2022)
The middaily chart does not show much change in terms of the bearish advantage over the market.
There seems to be quite a heavy deviation understood as distance between the CTF Trailer Stop $43500 (invalidation level/resistance) and the actual market price right now at $39933.
Eventually, the price of bitcoin should get back closer to the said resistance level in an attempt to re-gain the control over the market by the buyers. Yet, until that happens the bears are in control and add the selling pressure.
The BWAP block is defined at 40000-40500 USD, and it is resistance area backed by price and volume indicators.
A very simple analysis of the MTF chart of BTCUSD reveals that the downwards momentum on the shorter-term time frames is apparent and strong.
This can be told by the steepness of the Momentum Bands indicator heading south and increasing the bandwidth. This very distance between the High Band and the Low Band displays the volatility increase, typical to aggressive selloff events.
As of now, the Bands reveal that the most probable zone of interest for BTC is defined by the volatility-based support at $38200s and the resistance at $43200s.
The BWAP support block remains in the area, where bitcoin is currently attempting to build the base for a potential bounce. However, no strength is apparent on the bullish side for now.
The hourly chart reveals how strong the supply side has been over the course of the past couple of days, amid the selloffs and uncertainty events seen on the equities side.
Notably, BTCUSD marks a local support at $39500, and as long as it’s defended, bitcoin looks likely to continue to consolidate inside a narrow-bound range between $39000 and $40700.
Gauging on the shape or the angle of the chart pattern between the said boundaries, it rather looks as a short-term continuation pattern than reversal, the way I see it.
That being said, a valid breakdown below the 39000 USD support, may add downwards pressure and lead into the 38200 USD retest, or even lower into the mid 30000s.
All things concerned, we need to monitor the performance of equities to gauge on the next bitcoin moves – mainly, because of their strong correlation. Knowing that equities selloff is a bit over extended to the downside, not all is lost for the bulls yet, and they may get an influx of technical demand and mean reversion to the upside, at least for the short-term.
The BPRO Level Lines show off resistances as following:
That’s all for now. More details in the exclusive video report. God bless.