Firstly as a disclaimer this is not financial advice, just my opinion.
looking on lower time frames (15 -30 mins) BTCUSD has been in an ascending channel for a little while now, and has hit the upper trendline twice. this was making me bullish to be honest, but I started zooming out a bit and I can clearly see on the 1 hour, 4 hour and daily chart there is a significant bearish divergence forming in the RSI.
ascending channels are associated with corrective movements, so I feel this might just be a correction here before a move lower. I think to be bullish we now need to see a strong reaction to the 52k level, and more importantly we need to break the bearish trend in the RSI. if this divergence keeps going then the eventual correction will only become more severe.
in the long term I still see an 80k+ coin, but short term, given the bearish divergences, I think there is pain to come until those indicators are reset.
Trade it, or just diamond hands it. That's your call. personally I am now going to take a back seat in dollars and wait for this divergence to play out.
looking on lower time frames (15 -30 mins) BTCUSD has been in an ascending channel for a little while now, and has hit the upper trendline twice. this was making me bullish to be honest, but I started zooming out a bit and I can clearly see on the 1 hour, 4 hour and daily chart there is a significant bearish divergence forming in the RSI.
ascending channels are associated with corrective movements, so I feel this might just be a correction here before a move lower. I think to be bullish we now need to see a strong reaction to the 52k level, and more importantly we need to break the bearish trend in the RSI. if this divergence keeps going then the eventual correction will only become more severe.
in the long term I still see an 80k+ coin, but short term, given the bearish divergences, I think there is pain to come until those indicators are reset.
Trade it, or just diamond hands it. That's your call. personally I am now going to take a back seat in dollars and wait for this divergence to play out.