Looking at current price action, it seems like the price of Bitcoin has formed a Bull Flag formation which is a bullish continuation pattern with a bias to break to the upside.
A break of bespoke psychological resistance located at $50000 per Bitcoin will confirm the bullish outlook and push the price at least to $55000 per one Bitcoin, resulting in at least 10% price increase.
🔴 However, when we look at the Moving averages, the price is far away from them and to keep a healthy strong trend, the price needs to ride on 20 EMA, instead of being highly above it.
The fact that 20 EMA is located at $42000, while the price is at $48000 points toward a correction.
Another result of this inconsistency can be a break above $50000 quickly followed by a strong correction to the downside to retest 20 EMA, or maybe even 50 EMA.
So another strong correction may occur, but don’t panic as this wouldn’t impact the overall uptrend and buying the dips is the best approach, rather selling on dips.
MACD is on strong buying wave, but the bullish momentum is confirmed to be faltering and we may now expect another buying wave to occur, but a switch to a selling wave is more likely.
RSI while still above 60 is giving very slight bearish divergence as the price is making higher highs but RSI is printing lower highs. This fact points towards a correction and a break below 60 will mean a retest of 40 RSI level. A break below 60 will also mean a loss of bullish momentum, that is currently present.
🔴 In conclusion, the price may also be printing a rising wedge which is bearish pattern and a correction to $40000 is more likely than a break of $50000. But even if this break above $50000 happens, the gains would have very hard time to sustain above $50000 as the price is too far from Moving averages.
(Moving averages are the most important indicators that we rely on)
A break of bespoke psychological resistance located at $50000 per Bitcoin will confirm the bullish outlook and push the price at least to $55000 per one Bitcoin, resulting in at least 10% price increase.
🔴 However, when we look at the Moving averages, the price is far away from them and to keep a healthy strong trend, the price needs to ride on 20 EMA, instead of being highly above it.
The fact that 20 EMA is located at $42000, while the price is at $48000 points toward a correction.
Another result of this inconsistency can be a break above $50000 quickly followed by a strong correction to the downside to retest 20 EMA, or maybe even 50 EMA.
So another strong correction may occur, but don’t panic as this wouldn’t impact the overall uptrend and buying the dips is the best approach, rather selling on dips.
MACD is on strong buying wave, but the bullish momentum is confirmed to be faltering and we may now expect another buying wave to occur, but a switch to a selling wave is more likely.
RSI while still above 60 is giving very slight bearish divergence as the price is making higher highs but RSI is printing lower highs. This fact points towards a correction and a break below 60 will mean a retest of 40 RSI level. A break below 60 will also mean a loss of bullish momentum, that is currently present.
🔴 In conclusion, the price may also be printing a rising wedge which is bearish pattern and a correction to $40000 is more likely than a break of $50000. But even if this break above $50000 happens, the gains would have very hard time to sustain above $50000 as the price is too far from Moving averages.
(Moving averages are the most important indicators that we rely on)
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