Bitcoin Update for May 27th, 2021
It's been a couple of days since my last update, mainly because bitcoin really hasn't been doing much lately. After dipping on the 23rd to just above $31k bitcoin has been slowly rising and now sits just above $39k.
Bitcoin 4-hour Chart
Looking at the 4-hour chart above you can see how bitcoin has been slowly rising but so far is really not showing much bullish momentum. Also, bitcoin looks like it is forming a rising wedge pattern which is a bearish pattern so I am watching for a possible breakdown out of this pattern. On a positive note, bitcoin is trading slightly above some high-volume nodes so that should provide a little bit of support.
Bitcoin Daily Chart
Looking at the daily chart you can see that bitcoin is trading right on top of the 7 EMA and is currently printing a Doji candle. I would say at this point it is 50/50 whether bitcoin goes up or down. Bitcoin also still sits below all of the other moving averages which will continue to push down on top of BTC the longer it trades sideways.
Bitcoin 3 Day Chart
Looking at the 3-day chart you can see just how much indecision there is in the market right now as bitcoin is forming a Doji candle. The candle close is only about 3 hours away so if it closes anywhere close to how it looks right now I would consider it a reversal candle. That doesn't mean necessarily that bitcoin is going to drop dramatically but we could see a drop back to the 100 EMA.
Bitcoin Daily MACD
Looking at the daily MACD chart you can see just how extended it had become above the zero line when compared to the peaks in 2017 or 2019. You can also see that due to the pullback it is now overextended the same amount below the zero line. Also, the MACD line has bounced and is now heading higher and may cross above the signal line. At some point, I would expect a reversion to the mean but how long that could take is anyone's guess.
Bitcoin 3 Day RSI
Looking at the 3 day RSI you can see that there is a trendline created by the November 2018 and March 2020 COVID crash lows. You can also see that the RSI has just bounced off of it. Does this mean that bitcoin will go higher from here? Possibly, but other indicators seem to point to more downside. These mixed signals show just how indecisive the market is right now and as I said earlier I feel it could go either way.
Bitcoin Weekly Chart
Now we will move to the weekly chart. You can see that bitcoin is still quite a ways below the 21 EMA. A close above would be very bullish but there are only three days left to the close and bitcoin doesn't seem to be in a hurry to go anywhere lately, you can also see that both indicators are still looking bearish. The bottom line is I don't have a clue where bitcoin is going from here. If I had to guess would I say up or down? I have to say that with all of the mixed signals I would probably split the difference and say sideways. Maybe by the time of my next update, we will have a little more clarity about where bitcoin is going.
Take care!
BigskyCrypto
info@bigskycrypto.com