Bear market rally continues

30 ene 2023

Over the weekend, Bitcoin reached a new high of $23 954 before faltering back to $23 000 today. Unfortunately, the move to a new high occurred again during the weekend when the volume is generally lower than during the week, allowing for easier price manipulation. Therefore, we are raising another question about the rally's health (regardless of how bullish this new high is in the short term). In the coming days, we will continue to pay close attention to volume, which has been flashing warning signs with each Bitcoin’s move higher. Furthermore, we will be very cautious due to the FOMC meeting and a high probability of an increase in volatility. Since our previous assessment, not much has changed; we still believe the current rally is merely another bear market rally. Therefore, we maintain our price targets for BTCUSD at $15 000 and $13 000.

Illustration 1.01

Illustration 1.01 displays the daily chart of BTCUSD. The red arrow indicates the decline in volume accompanying the price increase, which is worrisome. In fact, it continues to support a bearish case beyond the short term.

Technical analysis
Daily time frame = Bullish
Weekly time frame = Slightly bullish

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.