Everytime there is a steep drop off in RSI divergence during a trend there is a new high. But look at this current move…there is a second RSI divergence bilateral move that shows an odd pattern. This means one of two things….
1. We are going to break through
2. We will break down in the short term
Here is a simple way to know if we will be breaking through. Over the next week, we need a close over the ATH of 61700. If we don’t get that all time high close, we are facing a major rejection in the trend. This doesn’t mean we will enter a Bear market, but it is a cause of concern. The break down levels will be very sharp as institutional investors will sell off and acquire all the retail investors BTC as they enter their stops. We will see massive consolidation and look to approach 42-45k dollar levels.
If we break through, the uptrend will be something we have never seen before. It will be a parabolic move that takes BTC to uncharted territory. We will have to start a new kind of chart analysis with new confluence points to make sense of it.
Unfortunately I fear that the short term bullish scenario is far fetched. But BTC has a way of defying logic. If we get this parabolic move, the amount of institutional investors on this unique asset will make its own laws of physics. BTC is at a very critical point. Continuous rejections at the ATH will determine what happens next. If we break through, we will never see another sub 60k BTC again.
All previous analysis we made in this kind of charting has proven true and we don’t expect this to be any different. Please do your own research before making any investments. This is all informational only. Not trade advice.
HAPPY TRADING!!
1. We are going to break through
2. We will break down in the short term
Here is a simple way to know if we will be breaking through. Over the next week, we need a close over the ATH of 61700. If we don’t get that all time high close, we are facing a major rejection in the trend. This doesn’t mean we will enter a Bear market, but it is a cause of concern. The break down levels will be very sharp as institutional investors will sell off and acquire all the retail investors BTC as they enter their stops. We will see massive consolidation and look to approach 42-45k dollar levels.
If we break through, the uptrend will be something we have never seen before. It will be a parabolic move that takes BTC to uncharted territory. We will have to start a new kind of chart analysis with new confluence points to make sense of it.
Unfortunately I fear that the short term bullish scenario is far fetched. But BTC has a way of defying logic. If we get this parabolic move, the amount of institutional investors on this unique asset will make its own laws of physics. BTC is at a very critical point. Continuous rejections at the ATH will determine what happens next. If we break through, we will never see another sub 60k BTC again.
All previous analysis we made in this kind of charting has proven true and we don’t expect this to be any different. Please do your own research before making any investments. This is all informational only. Not trade advice.
HAPPY TRADING!!
