AlanSantana

🅱️ Bitcoin | Normal Correction Expected!

Short
AlanSantana Updated   
CME_DL:BTC1!   Bitcoin CME Futures
Here we have a nice and classic pattern on the Bitcoin Futures (BTC1!) daily chart.
This pattern is a rising wedge which is predominantly bearish. When it shows up, it tends to predict lower prices.

Bull volume peaked 16-October, more than 1.5 months ago.
After this date, the daily trading volume has been dropping steadily. This signal supports the rising wedge as a bearish pattern.

The RSI peaked 25-October while Bitcoin peaked 24-November and here we have a month long bearish divergence.
The RSI has been trending lower since it peaked a month ago. This signal also supports a correction or down-move developing next.

Finally, we have multiple gaps that were left open on the way up. These can work as a magnet for Bitcoin's price.

Things can change and the charts signals can become invalid based on how the price changes.
While the bearish signals remain in place, we keep a bearish bias.
If the bearish signals are negated, we become bullish.

We follow the market, we trust the chart.

Namaste.
Comment:
While we have a new high today, the "rising wedge" pattern is still valid.
This is a bearish pattern.


Be careful.

Thanks for the support.

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