Bitcoin looks ready to bounce! Factors at play:
- Bullish divergence on the MACD/RSI: Even as the price action trends lower, the strength on the RSI and MACD increases.
- RSI Trends: Long term descending trendline meets the near term ascending trend line. RSI MUST break up or down. My bet is that the RSI continues on the path of the newer trend line, and breaks to the upside. Getting over 50 would be very bullish.
- Bolllinger bands: Tightening - this occurs during a period of accumulation and lower volatility. It will need to break up or down soon, as the range is too tight to continue moving laterally.
- MAs are moving down and getting closer to the price action. Getting above the 20, then the 50 would be a bullish move. Right now, they are acting as a strong resistance.
- FIB Levels - Price action is sitting right between the 2 levels where reversals are most likely. Note: Price action didn't touch the 618 (there is still a chance it will do that)
- Recent Trend Line: The price action in the descending channel has been moving to the top of the flag, looking for a breakout. It needs to hold that more recent (ascending) trend line in order for a breakout to happen. Falling through that trend line would lead to more downside.