Hello everyone, welcome back to my weekly column Bitcoin 360! Today, I have on-chain analysis related to Bitcoin profit and loss (PNL) before continuing on technical analysis (TA). Happy weekend and happy reading!
Let’s start with a shocking chart on Bitcoin PNL. NB: the era of high profits is over (for the moment) and the other side of the coin is BRUTAL!
Bitcoin saw more than $3.45 billion (~£2.5 billion) in losses last week. I’ll let you imagine the total for all altcoins… However, capitulation never lasts very long. If we look at history, we see a steady rise, peppered with extremes. Big gains go hand-in-hand with a big losses.
Let’s dwell a little on the daily. The analysis is the same as last week: the price is oscillating in a range. The price is resting on support with a nice pool of liquidity. This means the institutions and whales were probably able to recharge on these levels to ‘potentially’ initiate a wave of trend reversal. But that is just my guess. We must remain vigilant: the trend remains bearish in the short term. A break to the old highs may be a good indication to return to a stronger uptrend.
On the four-hourly, the price is still charging up. Once the bottom of the support was tested, the lens was the mid-range in red. Once this was touched, the price traced back up to the Order Block (OB) and the 61.8% Fibonacci level.
There is a potentially good entry for a short-term trade with a high-range target and a stop below the OB. This offers a good trade risk/reward ratio. But beware! The trend remains bearish. If you buy, place stop losses!
Finally on the hourly, we can see a bull flag. Around the OB area marked on the four-hourly, the price is printing divergences, a sign that the very short-term downtrend is losing momentum. We may see a trend reversal at this level. This argument is supported the fact that we have broken resistance, a sign that the bulls are out.
To conclude, we have a bearish trend and are ranging, but traders can attempt a trade at the OB with a top-of-range target, which would offer a good risk/reward ratio.
As I always say, never invest more than you can afford to lose and DYOR! Happy trading and see you next Friday for a new article on CoinTribune!
Passionate about technical analysis and technology, I have been diligently following cryptocurrencies since 2017. Beyond trading and investing, I try to democratise, in my own way, the ecosystem that will undoubtedly change our habits in the future!
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
|BITCOIN (BTCUSD) ₿||$57,474.04||0.88%|
|ETHEREUM (ETHUSD) Ξ||$4,652.00||0.46%|
|IMM. US (REIT)||$2,722.08||0.61%|
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