As expected in my last idea (linked below) Bitcoin has corrected 35% since our top at $65k and now we are sitting just above $42k and getting some clear bullish signs on 4h timeframe as well as daily.
On 4h we have a bullish divergence on MACD histogram as well as on RSI as indicated by the yellow arrows. This means that we are approaching the end of this correction. Historically BTC has corrected between 30-40% during a bull run and this can be no different.
Moreover on 4h MACD we have completed a W formation on the moving averages and with a little bit of push this should take us higher and maybe even back into the blue descending triangle to re-test the key descending resistance at around $54k-$56k.
On daily the Stock RSI and RSI are both in the oversold territory now and trying to curve back up. It will take more days to get a conclusive bullish bias (such as a bullish cross on Stoch RSI or a reversal on the MACD histogram). Nevertheless, if we manage to close today's daily candle in green we have a good sign which corroborated with the 4h indicators, would lean bullish.
In any event, what is important is that the $42k level held well so far and we appear to have a decrease in the strength of this drop, so the trend may reverse soon.
As such, buying here is a very interesting proposition. But don't burn all your cash at this level, if we happen to drop lower, keep some cash for that scenario just in case. Buying BTC under $40k would be a dream.
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On 4h we have a bullish divergence on MACD histogram as well as on RSI as indicated by the yellow arrows. This means that we are approaching the end of this correction. Historically BTC has corrected between 30-40% during a bull run and this can be no different.
Moreover on 4h MACD we have completed a W formation on the moving averages and with a little bit of push this should take us higher and maybe even back into the blue descending triangle to re-test the key descending resistance at around $54k-$56k.
On daily the Stock RSI and RSI are both in the oversold territory now and trying to curve back up. It will take more days to get a conclusive bullish bias (such as a bullish cross on Stoch RSI or a reversal on the MACD histogram). Nevertheless, if we manage to close today's daily candle in green we have a good sign which corroborated with the 4h indicators, would lean bullish.
In any event, what is important is that the $42k level held well so far and we appear to have a decrease in the strength of this drop, so the trend may reverse soon.
As such, buying here is a very interesting proposition. But don't burn all your cash at this level, if we happen to drop lower, keep some cash for that scenario just in case. Buying BTC under $40k would be a dream.
Like and follow if you liked this idea! Also join my crypto community to stay in touch!
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