Bitcoin BTC/USD was sliding about 3% lower on Monday after rejecting the 200-day simple moving average on the weekly time frame for the sixth straight week in a row.
The apex crypto was also trading in an inside bar pattern on the weekly chart, in tandem with the S&P 500, which was settling into the same formation but on the daily chart. A big week ahead of earnings likely has the market in a state of indecision because the reactions to a few big tech companies printing results this week is likely to affect the future direction across multiple sectors.
Some of the largest companies reporting this week include Alphabet Inc GOOG GOOGLE on Tuesday, Meta Platforms, Inc META on Wednesday and Apple Inc AAPL spirit Amazon.com, Inc AMZN on Thursday.
Bitcoin and many other coins and tokens in the cryptocurrency sector have frequently been trading in tandem with the general markets recently, which suggests big tech earnings could greatly affect the price action of Bitcoin, even if the companies aren’t directly related to the crypto sector through their business practices.
Bitcoin is currently showing indecision, with a mixture of bullish and bearish signs, which likely means many more conservative traders and investors are sitting on the sidelines.
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The Bitcoin Chart: Bitcoin is trading in an uptrend on the weekly chart, but a downtrend on the daily chart. On the daily chart, Bitcoin’s most recent lower high was formed on $23,036.46 during Sunday’s 24-hour trading session and the most recent confirmed lower low was printed at the $21,941.01 mark on Saturday.
- Bitcoin is also trading within a falling channel pattern on the daily chart, making its series of lower lows and lower highs between two parallel trendlines. The pattern is considered bearish until a stock or crypto breaks up from the upper descending trendline of the formation on higher-than-average volume, which can indicate a large reversal to the upside is on the horizon.
- If Bitcoin closes the trading session near its low of the day price, the crypto will print a bearish Marubozu candlestick, which could indicate lower prices will come again during Tuesday’s session. If the crypto trades lower again on Tuesday, traders can watch for Bitcoin to reverse at the bottom descending trendline of the channel.
- The move lower during Monday’s session was taking place on lower-than-average volume, which indicates consolidation as opposed to fear selling. At press time, Bitcoin’s volume on Coinbase was measuring in at about 14,000 compared to the 10-day average of 20,111.
- Bitcoin has resistance above at $22,729 and $25,772 and support below at $19,915 and $17,580.
See Also: Mark Cuban On The Nightmare Waiting For The Crypto Industry