Bitcoin BTC/USD fell about 3% on Monday after rejecting the 200-day simple moving average on the weekly timeframe for the sixth consecutive week.
The crypto apex was also trading in an inside bar pattern on the weekly chart, in tandem with the S&P 500, which settled into the same formation but on the daily chart. A big week ahead of earnings likely has the market in a state of indecision as reactions to a few big tech companies reporting earnings this week are likely to affect future direction across multiple sectors.
Some of the biggest companies reporting this week include Alphabet, Inc. GOOG GOOGL tuesday, Meta-Platforms, Inc META on Wednesday and Apple Inc. AAPL and Amazon.com, Inc. AMZN Thursday.
Bitcoin and many other coins and tokens in the cryptocurrency industry have frequently traded in tandem with general markets recently, suggesting that big tech profits could greatly affect Bitcoin’s price performance, even if the companies are not directly related to the crypto sector. through their business practices.
Bitcoin is showing some indecisiveness right now, with a mix of bullish and bearish signs, which likely means a lot more traders and conservative investors are sitting on the sidelines.
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The Bitcoin chart: Bitcoin is trading in an uptrend on the weekly chart, but a downtrend on the daily chart. On the daily chart, Bitcoin’s most recent lower high was formed at $23,036.46 during Sunday’s 24-hour trading session and the most recent confirmed low was printed at $21,941.01 on Saturday. .
- Bitcoin is also trading in a descending channel pattern on the daily chart, making its series of lows and lower highs between two parallel trend lines. The pattern is considered bearish until a stock or crypto breaks away from the upper descending trendline of the formation on above average volume, which may indicate that a significant upward reversal is on the horizon.
- If Bitcoin closes the trading session near its daily low, the crypto will print a bearish Marubozu candlestick, which could indicate that lower prices will return during Tuesday’s session. If the crypto drops again on Tuesday, traders can watch for Bitcoin’s reversal at the channel’s lower descending trendline.
- The decline during Monday’s session occurred on below average volume, indicating consolidation as opposed to fear selling. At press time, Bitcoin volume on Coinbase measured around 14,000 compared to the 10-day average of 20,111.
- Bitcoin has resistance above $22,729 and $25,772 and support below at $19,915 and $17,580.
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