BTCUSD - Glass half full approach

BTCUSD is having a rough few days. Price is dropping hard and it seems there isn't a consensus of where support will come in.

I'm not willing to take a position just yet, but I do want to say that having the RSI already at historic low levels is a bad thing on the daily chart, it does represent some improvement. The major drop from 6k to 3k had RSI reach record daily low levels never before seen in Bitcoin history. Do I think this dump will produce worse RSI levels than the dump at 6k? Most likely not.

While we have consolidated for several months and broken down out of the consolidation that does not mean this may not end up being a great dip-buying opportunity. As stated, the RSI is historically oversold, however, in the past, RSI typically doesn't stay oversold long for Bitcoin. The dump for the 6k consolidation that took nearly a year was the lone exception.

I'm not convinced we stop and turn around here, because downward momentum on the weekly charts is hard to ignore. However, I will be watching for a potential divergence forming on the RSI on the daily charts if this break down is not bought up swiftly soon, and I imagine it won't.

Certainly worth me keeping my eye on.

DISCLAIMER: For educational and entertainment purposes only. Nothing in this content should be interpreted as financial advice or a recommendation to buy or sell any sort of security or investment including all types of crypto. DYOR, TYOB.

Comment:

That snapshot is just some goofy drawings that might represent a potential scenario where a divergence can occur on the 1 Day chart with the RSI. If there is a divergence on the one day chart, it would follow a similar pattern to the 6k to 3k break, where it took a while for the price to move sideways during some accumulation before a big move.

However, being super optimistic, if the RSI can bound up quickly without divergence and head towards overbought territory like about 50% of the time in BTC history that would be ideal for the bull market still being intact.