Bitcoin: Parabolic Trends Never End Well (Apr. 30)

X FORCE GLOBAL ANALYSIS:


Happy Bhudda's Birthday, everyone. Bitcoin has been on a bullish rally and our parallel analysis has played out perfectly.

Market Sentiment:


Bitcoin has shown unprecedented amounts of strength over the past few days. We are now toying with the next major trend line resistance that may bring some interesting price action.

We also believe that the idea of a spot long with a tight R:R ratio can be worth it if the trend breaks overall. Keyword here is overall.

Next, we want you to check the next candle to candle trendline we had from our rally back from July of last year. If that trend line is broken, we may have an overwhelming impulse wave to 10K, or beyond.

Our next important factor to count in for this risky setup is that we are seeing an insane overshoot on all levels including the RSI, Envelope indicator, and MACD.

We must also assume that every single overbought (as indicated in the green boxes), there was a huge decline in price, bullish or not.

What we believe:

We believe that what goes up, must also goes down; however, with Bitcoin's halving event, this can be a risky move to both long and short.

Trade Safe.