In my last post I was speculating if a recoiling happens, then price will attempt to break out of the channel to the upside towards 40k mark. We have just over 33k and things are looking dangerously top heavy. Let's zoom out and assume the local top is in or close. Weekly RSI is reaching for 90 level. This high level of RSI reading usually indicates a top or beginning of a macro top where price may create a higher high but RSI will create a lower high making a higher timeframe divergence of doom. I am assuming the later scenario is taking place as I am suspecting the macro top is not yet in. So what happens now? My guess is as good as anyone else's. However, I will be looking at the boxed areas as the next opportunity plays. If price goes straight down from here then 10 and 21 week EMA levels will be buy points for me. If price moves a bit higher, the boxes will move up with the fib levels and EMA numbers. There are some solid horizontal support levels making confluence with the diagonal support levels and fib retrace levels. Got to put on a brave face now; these drops will scare the crap out of everyone when time comes. Ultimate top before another multi year bear maker could be around the corner, but not just yet. Let's see how things play out. Price can move down all the way to 12k and still be on an uptrend. This is where risk management is more important than catching the tops and the bottoms. Not planning to go all in or holding out for a price point will be the right thing to do.
