Why so bearish? A few reasons - on the above 4-day chart following the overbought conditions (green columns) there is:
1) Regular Bearish divergence between price action and ALL oscillators. 1 of 3 can be ignored. 3 of 3 is alarm bells. This is a powerful signal a strong reversal is imminent.
2) RSI support breakout. Highlighted in ‘blue’ you can see two things:
a) RSI support was broken.
b) RSI came back up to test support and was rejected.
3) On the 2-week chart below, the last candle printed is considerably bearish. Not quite a gravestone DOJI (candle body too thick), but nonetheless, huge amounts of selling pressure.
Why $22k? Look left. Previous corrections from RSI @ 90+ resulted in price action finding support on the 0.618 golden ratio. Historically Bitcoin has a lot of respect for this Fibonacci ratio. Right now the 0.618 is at $21,700k.
2-week chart:
1) Regular Bearish divergence between price action and ALL oscillators. 1 of 3 can be ignored. 3 of 3 is alarm bells. This is a powerful signal a strong reversal is imminent.
2) RSI support breakout. Highlighted in ‘blue’ you can see two things:
a) RSI support was broken.
b) RSI came back up to test support and was rejected.
3) On the 2-week chart below, the last candle printed is considerably bearish. Not quite a gravestone DOJI (candle body too thick), but nonetheless, huge amounts of selling pressure.
Why $22k? Look left. Previous corrections from RSI @ 90+ resulted in price action finding support on the 0.618 golden ratio. Historically Bitcoin has a lot of respect for this Fibonacci ratio. Right now the 0.618 is at $21,700k.
2-week chart:
Comment:
The bulls are certainly tenacious with every dip bought up quickly.
The top chart still holds true for the time being with market support now between $23.5k - $24k. Every day it climbs a little higher the longer the correction takes.
The top chart still holds true for the time being with market support now between $23.5k - $24k. Every day it climbs a little higher the longer the correction takes.
Comment:
A month later with price action more or less the same has resulted in the floor for price action raising to around $30k
What is interesting is the RSI. It is forming a falling wedge pattern (green triangle) with a projected breakout around early May. This is a bullish pattern, but cannot be traded until confirmed.
What is interesting is the RSI. It is forming a falling wedge pattern (green triangle) with a projected breakout around early May. This is a bullish pattern, but cannot be traded until confirmed.
Trade closed: target reached:
The supporting moving averages now have moved up to meet current price action.
Trade closed: target reached:
The bottom is in. Fill yer boots.
BTC
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Weblink: www.patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
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Weblink: www.patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
The sense of euphoria of price action is reminiscent of late 2017. This is no time to by buying, that was way back at $3.5k last year.
What I will say is I don't know where the top is. No one does. Every day price action continues to move up so does the support zone.
Hypothetically speaking if price action continues to $65-70k, then the support area would move to around $24k.