Starting on the 4H Chart here for a short-term view:
The blue line that you see in the chart above comes from the LSMA.
Right now volume is in consolidation. Volume has been steeply declining. In my opinion, it feels like a matter of time before the volume sharply increases again.
Whether it spikes up or down remains to be seen.
As explained previous analyses in the last week or so, the blue zone marks a heavy point of resistance for Bitcoin because of all of the converging resistance points.
These are all EMA indicators on the 4H chart.
Lime Green = EMA-12
Burnt Orange = EMA-26
Golden Line = EMA-50
In this chart:
This is the stacking that you want to see. However, EMAs are lagging indicators though — so, keep that in mind. I can’t imagine that the recent consolidation in price action would seriously change things as far as these EMA indicators are concerned.
All EMA Indicators in this Chart Will Also Serve as Supports
Support at $6.3k (cloud).
Base Line (red line) directly overhead — that’s a short-term resistance.
RSI Headed Back Up
As you can see there was a few days where the RSI had somewhat of a dip. Now it’s back on its way up. So, that’s a positive sign.
If someone had no position in Bitcoin, I don’t think that taking one now would be a smart move.
If someone were in a position (going either way), I’d close it immediately and set alarms a leg down (at around $6.3k) or a leg up ($6.9k+) in order to ensure that I catch the boost.
Personally, I think that the price of Bitcoin is going to rise based on what I’m seeing.
I think $7k would be the next obvious resistance before $7.1k-$7.3k if that situation does play out.
If the price does not eventually break upward, a dip back down as low as $6k in the immediate term is probably more likely before it continues to tumble.
Disclaimer: This is not financial advice. At all. Make your own decisions and take your owns risks. I’m not liable or responsible for them. This is my opinion.