On the 4-hour chart there's a clear bearish divergence forming. While price is rallying higher, the RSI is telling us that the strength of the trend is weakening. This weakening of the trend is confirmed by bitcoins' shrinking volume.
On the daily we can see that bitcoin is dangerously overbought. The RSI is at levels not seen since the 8th of December 2017. What about the daily Ichimoku Cloud? Glad you asked ; ) The cloud that has shown to be good support / resistance is falling out from beneath bitcoins feet.
On the weekly the stochastic RSI is peaking. Waiting to cross over and smack down. Just like a lion waiting for its prey show a sign of weakness.
When greed is high we as traders should be cautious.
Best of luck!
PGrijpink
On the daily we can see that bitcoin is dangerously overbought. The RSI is at levels not seen since the 8th of December 2017. What about the daily Ichimoku Cloud? Glad you asked ; ) The cloud that has shown to be good support / resistance is falling out from beneath bitcoins feet.
On the weekly the stochastic RSI is peaking. Waiting to cross over and smack down. Just like a lion waiting for its prey show a sign of weakness.
When greed is high we as traders should be cautious.
Best of luck!
PGrijpink
Bitcoin is now trading at the bottom of the EMA ribbon and has found temporary support there. The question If will that hold?
This was not the dump needed to get bitcoin prices back in "normal" territory. Bitcoin is still in the red on the NVT, overbought on the daily RSI and very high on the weekly stochRSI.
therefore, I think we can see bitcoin going lower in the next weeks to at least test the 4200 level again. But bitcoin is unpredictable most the times so it could also be in a few days or months.
A slower and more controlled rally is needed the start the real bull market. But at that point no one will believe it has started.
I'm starting to see the light at the end of the tunnel. That doesn't mean we're there yet. especially because I'm not a professional ; )
Watch your emotions!
PGrijpink