Bitcoin is still trading sideways, and there are two ways of looking at this: Either, it could be seen as Bitcoin being eager to break out of the down trend, or it could be seen as Bitcoin being just too weak to break out.
ETP is a seemingly insignificant altcoin, except for the fact that its price action in 2019 looks extremely similar to Bitcoin’s current price action. It started with a rising wedge, followed by a leg up. After that, ETP entered a sideways range – and then it dumped heavily. Now this is not just me comparing BTC to a random altcoin. In fact, there’s something very important to pay attention to: ETP made several attempts on going higher and was rejected over and over again. And this is exactly what is happening with Bitcoin at the moment: It just can’t go up. The upside was tested many times, so maybe it’s time that the downside is tested.
While there is a big green ichimoku cloud on the daily, I personally believe that it might not provide as much support as the bulls hope for. In addition, the EMA ribbon has no spread, indicating a loss of bullish momentum.
With a rising channel on the 4h, Bitcoin is also showing signs of weakness on lower time frames. We might see a dump – and if that happens, I’ll let BTC fill the short order I’ve set already weeks ago.