Hello BTC friends! I am new to TA but would like to share with you a potential outcome that I am seeing. Let me know your thoughts so we can all learn!
From my perspective there are multiple reasons why BTC looks like it will fall in price:
1) BTC completed the 5th wave on 3/14/21 and is now in the correction phase.
2) BTC failed to reach the top of the downtrend line (resistance channel line) on wave 5. When this happens there is a potential for the price to break the uptrend line( support channel line).
3) BTC did not break out from on wave 5 with as much volume as was seen with breakouts from waves 0 - 1 and 2 - 3.
4) RSI values are dropping with each upward impulse. Wave 1: RSI = 89.2, Wave 3: RSI = 79.95, Wave 5: RSI = 72.73
5) The MACD line is about to cross the Signal line moving downwards.
I believe the 5 reasons above support my bearish perspective. I am not sure if the correction waves present an accurate picture but I drew the last correction wave as breaking the uptrend line since BTC was not able to hit the top of the downtrend line. I also have the final wave fall down to 42K where we have strong support.
Let me know your thoughts and correct me where possible. Good luck!
From my perspective there are multiple reasons why BTC looks like it will fall in price:
1) BTC completed the 5th wave on 3/14/21 and is now in the correction phase.
2) BTC failed to reach the top of the downtrend line (resistance channel line) on wave 5. When this happens there is a potential for the price to break the uptrend line( support channel line).
3) BTC did not break out from on wave 5 with as much volume as was seen with breakouts from waves 0 - 1 and 2 - 3.
4) RSI values are dropping with each upward impulse. Wave 1: RSI = 89.2, Wave 3: RSI = 79.95, Wave 5: RSI = 72.73
5) The MACD line is about to cross the Signal line moving downwards.
I believe the 5 reasons above support my bearish perspective. I am not sure if the correction waves present an accurate picture but I drew the last correction wave as breaking the uptrend line since BTC was not able to hit the top of the downtrend line. I also have the final wave fall down to 42K where we have strong support.
Let me know your thoughts and correct me where possible. Good luck!