Hello everyone,
How are you all? I hope everyone is fine and doing great in their life.
The current market situation is once again falling under pressure due to the tensions between Israel and Iran. Whenever we have situation of war, market reacts in the negative manner. It is not only for the crypto but also for other risky assets including stocks that fall during the time of war.
Still we will try to see some major levels that must be seen regularly so that we can make sure that the market is in good state. I am sharing 1D time frame chart below for bitcoin and that will help you with some analysis of the parent of all crypto currency.
The time frame in month is eight months since when bitcoin have been trading between those two trendlines. When it was broken it was surely a indication of bitcoin aiming towards new all time high. Now it can be anywhere and I think we are yet to find the new All time high as long as we are above the first support line.
Let us look at the weekly time frame for bitcoin to understand why we are looking at those two lines as the safe sign for this market cycle. I have also drawn a white trendline since 2021 in the chart shared below.
That white line was the resistance for last cycle top for bitcoin and you can see in the screenshot that when it was broken we aimed towards a a new all time high and also we started to consolidate between those two lines shared in the first screenshot as well. The ultimate breakdown for bitcoin is still on the white support line.
I am saying this because that has been a very strong resistance for bitcoin and breaking that now towards downward will mean that we are heading towards the bear cycle again. But the primary two trendlines will be broken first and we will see a lower low pattern in my opinion so we will still have time to exit at the right time.
Before finishing this blog for today, I am also sharing the fear and greed index at the time of writing this blog. We can see that the sentiment is neutral and the cycle top should hit when it is close to 90 or maybe even above that number. If we see more attacks in coming days we will start moving towards the fear side for sure.
Share your thoughts with me in the comments related to the current market situation.
Thank You