Bitcoin - Have the Bears Taken Control?
Has Bitcoin reversed its bullish momentum?
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Bitcoin Rejecting From Bull Market EMA Resistance
After producing successful Weekly Closes above the 21-Week EMA (Green) for multiple consecutive weeks and successfully retesting the EMA as support, price has finally Weekly Closed below said EMA.
What does this mean?
Firstly, it shows how lacklustre the buy-side strength has been at the 21-Week EMA support, producing a limited rally even after multiple successful retests.
And secondly, the Weekly Close below the 21-Week EMA now means that price is now positioned for a bearish retest and that any short-term relief going forward could turn the EMA into new resistance.
Price would need to Weekly Close back above the EMA to reverse this sentiment.
The Weekly CME Gap
From a purely TA perspective, a rebound (even if just to try to tag the EMA into new resistance) makes sense but doubly so because of how a newly formed Weekly CME Gap has developed around that area.
So the relief rebound would not just serve a purpose to turn the 21-Week EMA (Green) into new reistance but it would also serve the newly formed CME Gap.
More, it would turn the old CME Gap area into new resistance; after all, the previous CME Gap served as a Range which has technically been lost given the Weekly Close below the old CME Gap bottom.
Bitcoin will need to Weekly Close above the 21-Week EMA and at least inside the CME Gaps to reclaim the bullish momentum it has recently lost.