According to an old famous saying "weekly chart is the best friend of a long term investor". In general, in a healthy and perhaps long term bull market, price usually comes back and touches 21 weekly moving average and then from there it bounces back higher.
Coming back to the current Bitcoin bull run, price has distanced a lot from 21 weekly moving average, most likely the effect of late comers aka FOMO. That being said, those FOMO now will possibly get slaughter since they bought Bitcoin around $40K and now they will start selling since they will think that "here we go, this is the end of Bitcoin bull run and Bitcoin is done".
However, as traders and investors, we always look at the charts and most importantly we learn lessons from the past. That being said, Bitcoin exactly is doing what I anticipated in my previous analysis (link below), that is completing a long overdue correction. Weekly 21 moving average is currently at $19k levels, RSI is cooling off and heading toward neutral zone and MACD is just started a divergence, a perfect recipe for a correction. However, I don't anticipate that this correction be over anytime soon, meaning that as it will take more time, 21 weekly moving average will move higher and should come inside $20K region. Then there is exactly when I'm buying and opening my long positions.
Again, if you are traders, keep an eye on altcoins while Bitcoin completing its correction.
Cheers guys!
Coming back to the current Bitcoin bull run, price has distanced a lot from 21 weekly moving average, most likely the effect of late comers aka FOMO. That being said, those FOMO now will possibly get slaughter since they bought Bitcoin around $40K and now they will start selling since they will think that "here we go, this is the end of Bitcoin bull run and Bitcoin is done".
However, as traders and investors, we always look at the charts and most importantly we learn lessons from the past. That being said, Bitcoin exactly is doing what I anticipated in my previous analysis (link below), that is completing a long overdue correction. Weekly 21 moving average is currently at $19k levels, RSI is cooling off and heading toward neutral zone and MACD is just started a divergence, a perfect recipe for a correction. However, I don't anticipate that this correction be over anytime soon, meaning that as it will take more time, 21 weekly moving average will move higher and should come inside $20K region. Then there is exactly when I'm buying and opening my long positions.
Again, if you are traders, keep an eye on altcoins while Bitcoin completing its correction.
Cheers guys!
