Possible Direction Of BTC : Bullish Or Bearish?

Bitcoin has already confused the masses with its vague momentum. For almost 2 months of continuous decline, BTC got stable around $6000 and then after a slight dump below $5800, BTC shot back up to $6800. Majority of people FOMO'ed in BTC around $6600 because it was highly likely that Bitcoin could see a rally towards $10,000 but unfortunately BTC dumped from $6800 and now again trading around $6200.

So, what now? Is Bitcoin going Bullish or Bearish?

Well, let's have a look at the charts and have a clear understanding of all possible scenarios:

• If you look at the chart, we have a clear downtrend line showing a clear and solid resistance. Also, we have 20 and 50 EMA line drawn on Daily chart. We can clearly see that since BTC started falling from $9600, it had never gone above 20 EMA line until last week when BTC broke it with volume and traded above it for quite some days. But after the BTC rejected $6800 four times this week, it started dumping and breaking 20EMA support with volume, although volume was not that high.  So, until BTC trade under 20 EMA, we likely to remain in downtrend.
• Also, an Inverse H&S pattern is also in play as you can see in the chart above. BTC hasn't invalidate this patter and currently we are trading according to it. A fall below $6050 will invalidate inverse H&S Pattern.
• Now, as we know that weekend basically contributes comparatively low volume, so its highly unlikely that we will see a major price spike in BTC price in immediate future. But still traders need to cautious while initiating a trade between $6000 and $6800 level as the current scenario is highly confusing. 
• If we look at the RSI, then it is diverging upward signifying a possible Bullish movement which is highly unlikely during the weekend as there's no volume in market right now to trade with.

As per my analysis, BTC might trade sideways during the weekend and even slight dump is also expected.  So if you're trading then please use stop loss to save yourself from any financial loss.

Thanks for reading..!!

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