It's Friday morning and another Bitcoin Breakdown analysis.
During this week we experienced the breakout from the ascending triangle formation I reported on forming last Friday.
The breakout occurred earlier than I hoped as the RSI was just to high to support a large breakout.
As you can see on this Daily chart, there is a large presence of bearish divergence within the MACD and the RSI.
I don't foresee this to be alarm bells to start looking at an upcoming bear market, but a healthy retraction to get our RSI back out of oversold territory.
While we're on the top of RSI, if we take a look at the weekly RSI for BTCUSDT it is heavily within the oversold region.
This retraction will hopefully bring it back down to just under 75 on the weekly RSI and around 50 on the daily RSI before we see another attempt for the bulls to over come.
My next major point is the trend line I have drawn in yellow, I foresee the Price action to trend sideways or slightly down until it makes contact with the trend line, the following it until another large breakout occurs. This a more likely than a breakdown past the trend line to test the 45MA line.
I try to keep these ideas simple and effective, if you feel there is anything i've overlooked or missed please bring it forward. The more ideas the better. I
If you enjoy these weekly analysis and want more please follow me and i'll be sure to continue.
The following ideas are general and you should contact a professional financial adviser before acting on any investment as it may not be best for your financial position. This is in no way finical advice, so do you own analysis before acting.
During this week we experienced the breakout from the ascending triangle formation I reported on forming last Friday.
The breakout occurred earlier than I hoped as the RSI was just to high to support a large breakout.
As you can see on this Daily chart, there is a large presence of bearish divergence within the MACD and the RSI.
I don't foresee this to be alarm bells to start looking at an upcoming bear market, but a healthy retraction to get our RSI back out of oversold territory.
While we're on the top of RSI, if we take a look at the weekly RSI for BTCUSDT it is heavily within the oversold region.
This retraction will hopefully bring it back down to just under 75 on the weekly RSI and around 50 on the daily RSI before we see another attempt for the bulls to over come.
My next major point is the trend line I have drawn in yellow, I foresee the Price action to trend sideways or slightly down until it makes contact with the trend line, the following it until another large breakout occurs. This a more likely than a breakdown past the trend line to test the 45MA line.
I try to keep these ideas simple and effective, if you feel there is anything i've overlooked or missed please bring it forward. The more ideas the better. I
If you enjoy these weekly analysis and want more please follow me and i'll be sure to continue.
The following ideas are general and you should contact a professional financial adviser before acting on any investment as it may not be best for your financial position. This is in no way finical advice, so do you own analysis before acting.
The breakout of the ascending triangle, followed by a traction back to the new support and a strong trend line are all looking bullish. RSI is slowly becoming stronger for another good run and breakout past 9000 soon. Let's all hope that the overhead resistance can be broken.