BTC 1D chart is showing red flags suggesting further downside is likely. With yesterdays bearish-engulfing candle, the RSI dropping below & then getting rejected off the 50, and the current position of the MACD I'd say the odds are very much in with the bears. (For now at least)
In my experience, the RSI and MACD can be very helpful indicators during certain situations and this is definitely one of those situations.
A rejection off of the "50" RSI level can lead to sharp drops. This is especially effective if some other conditions are met as well like if it's a higher timeframe chart or if the RSI has already dropped below the "50" level and is attempting to break back above it shortly after.
In this chart we see all of these conditions met on the RSI and for this reason I think it is very likely that we see further downside.
The MACD also plays an important role here. Just as the RSI dropped below "50", The MACD has dropped below "0". We can see it has come up just a little but has been going sideways below the "0" level for a bit here and a drop here could be bigger and more sharp of a drop based on my experience with these indicators.
It's important to note that this analysis covers a timeframe of about the next week or so and on even higher timeframes there is still room for a bounce. As long as BTC doesn't CLOSE any 1D or higher timeframe candles below the red "Emergency support" level then I think there is a decent chance to at least retest the current local highs just below 32K.
My opinion is that BTC will drop a little further as shown on the chart for the short term.
Then I believe we will see quite a good bounce which will at least retest the 32K area OR better yet, BTC will break the 32K area for a nasty bull-trap.
As of now I do not think BTC will go much higher than 32K (Maybe up to 35K but that's pushing it IMO) and I think we will see a few months of slow & steady downward price action. Maybe BTC ends up retesting 20K (for the last time) by end of year or early 2024. If a crypto bull run starts in 2024 along with the next BTC halving event, this could very likely be the last time you see prices this low.
Only time will tell.
Well that's it for now. I haven't posted on TradingView for a while but I saw this as a good opportunity to do so. Take Care & Trade safe.
Feel free to LIKE, COMMENT & SHARE. If you'd like to see more charts published on here, let me know and I'll see what I can make happen.
In my experience, the RSI and MACD can be very helpful indicators during certain situations and this is definitely one of those situations.
A rejection off of the "50" RSI level can lead to sharp drops. This is especially effective if some other conditions are met as well like if it's a higher timeframe chart or if the RSI has already dropped below the "50" level and is attempting to break back above it shortly after.
In this chart we see all of these conditions met on the RSI and for this reason I think it is very likely that we see further downside.
The MACD also plays an important role here. Just as the RSI dropped below "50", The MACD has dropped below "0". We can see it has come up just a little but has been going sideways below the "0" level for a bit here and a drop here could be bigger and more sharp of a drop based on my experience with these indicators.
It's important to note that this analysis covers a timeframe of about the next week or so and on even higher timeframes there is still room for a bounce. As long as BTC doesn't CLOSE any 1D or higher timeframe candles below the red "Emergency support" level then I think there is a decent chance to at least retest the current local highs just below 32K.
My opinion is that BTC will drop a little further as shown on the chart for the short term.
Then I believe we will see quite a good bounce which will at least retest the 32K area OR better yet, BTC will break the 32K area for a nasty bull-trap.
As of now I do not think BTC will go much higher than 32K (Maybe up to 35K but that's pushing it IMO) and I think we will see a few months of slow & steady downward price action. Maybe BTC ends up retesting 20K (for the last time) by end of year or early 2024. If a crypto bull run starts in 2024 along with the next BTC halving event, this could very likely be the last time you see prices this low.
Only time will tell.
Well that's it for now. I haven't posted on TradingView for a while but I saw this as a good opportunity to do so. Take Care & Trade safe.
Feel free to LIKE, COMMENT & SHARE. If you'd like to see more charts published on here, let me know and I'll see what I can make happen.