The Bitcoin bulls were strongly rejected from the 26-period EMA at $8,779 and the price dropped down below the 12-period EMA, currently trading at $8,341.
This doesn’t necessarily mean Bitcoin has turned bearish again as the bulls are still holding a higher low on the daily chart, however, the loss of the 12-period EMA is significant. The 4-hour chart is clearly in favor of the bears now as the downtrend has been confirmed. The bulls are currently fighting to break above the 26-period EMA but are getting rejected.
The daily chart maintains its uptrend as the bulls are looking to set a higher low compared to $8,088, although the most important support level is perhaps $8,000. If they are not able to hold this level, a shift in momentum will take place and the bears will have the upper hand again.
Technical indicators are signaling to sell on the daily timeframe, however, this could be misleading. If a trader is looking for a longer-term position, selling now wouldn’t be the safest option.
The weekly chart could have nullified the bear flag, however, this pattern is currently still in place as the bulls were not able to break above the 26-period EMA. It’s important to note that the EMAs are still crossed bullish here after the recent crash as the Bitcoin long term is still quite bullish.
The monthly chart is certainly bullish and in an uptrend where the bulls are simply looking to set a higher low compared to $7,156. They currently have defended the 12-period EMA twice and are looking for a bounce, probably setting a lower high matched to $14,000 or even a new high.
Bitcoin’s mining difficulty also seems to be increasing which could mean the mining interest is growing. It certainly suggests that the mining community is far less concerned with Bitcoin crashes which is also a huge bullish indicator for the long term of Bitcoin.
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