FX.co ★ #Bitcoin chart analysis

Trading instrument Bitcoin - D1 chart. The overall trend here can be called neutral. The wave structure is building upward. The MACD indicator is in the upper buy zone above its signal line. Earlier a very ambiguous situation had developed. The price was squeezed between levels. When it previously rose from the lows it reached the area of the horizontal resistance level 65960. It slightly broke above it, which is understandable as the margin of the higher-level error. There was an opportunity for a decline here, the level and the CCI indicator were also ready to move down from the upper overbought zone. In addition, a bearish divergence can be seen on that indicator - a strong sell signal. On the support level it was a significant signal. Some decline occurred, but at the same time there was a support level 63438 below. This is a mirror level at the edge of the decline and, as is known, such places are very strong, so at that time it resulted in a contradiction. I thought that the price might pause roughly at the level and a struggle between buyers and sellers would unfold. Most likely in the long term Bitcoin will resume its rise. It has a habit of trading sideways for a very long time with a wide range. You can sit in longs for more than a month while it finally produces a new directional upward movement. But it was evident that the US dollar dominated the market as a whole and this trend affected this instrument as well. As a result the price was pushed below the low. At the same time a bullish divergence formed on the MACD indicator, a very decent signal for growth. Plus, as confirmation there was a reversal pattern — a descending wedge. A mirror level 60752 was formed below; the price tested its area from above (considering margin) and tried to rise. The price traded sideways at the bottom for a long time, for several weeks, hesitating to launch the growth that was clearly brewing. In the end it shot up quite significantly over several days, then pulled back a bit and became completely stuck. I expected the price to strive to retest the 82008 level. And as can be seen a significant rise occurred; a breakout above the top took place. Behind the top there is a potential reversal zone, and a divergence formed on the MACD. There was a drop to the area of the broken 82008 level and here the question arises. There is a rebound, but it's scary to buy against the divergence... Out of the market. News to note today: 15:30 - Initial jobless claims in the USA. 16:45 - US Manufacturing Purchasing Managers' Index (PMI).