Bitcoin Is Close To A Bottom According To This RSI Pattern

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Most major bottoms since September of 2020 has been marked with a 4 hour Bullish divergence on the RSI .

This is where price goes lower, but the RSI moves higher to form a divergence.

The best bottoms were when the RSI was in oversold territory (below 30)

We are currently in a similar situation and I am looking at this for a potential bottom zone.

Ideally, we bounce slightly higher (maybe $32,500) and retest the yearly open as well as the .5 Fibonacci zone.

These both reside around $29,300-$29,500.

What we want to see are major bids fill across all spot exchanges like Coinbase, Bitfinex, Bitstamp and Binance.

Funding should be reset to negative or neutral.

This zone will provide a ton of liquidity because there are a lot of stop losses in this region (from most longs in 2021) and will liquidate any 50x-100X longs that think we are currently at the bottom.

This will also trap shorts who think that 'the top is in' and should we get an aggressive buy back, they will be forced to buy back in and give us fuel for the upside.

It is possible that $42,000 was a top and the market runs all the way down to the 61.8% zone or even back down to $20,000 level (with enough FUD and the dollar regaining strength under Biden administration.)

So invalidation can be a 4 hour candle close below the yearly open around $29,000 (tight stop loss) or a close below the $27,000 level (loose stop loss).

Take profits can be around $34,000-$35,000 for a short term swing or $46,000 targeting a continued bull run (longer term swing trade.)

We need to first assess the reaction in this zone and whether we get confirmed 4 hour bullish div and then take it from there.

Hope your trading goes well and all your bids get filled.

If you enjoyed the analysis, drop a like and if you have any questions, comments, I'll do my best to answer them all.
Trade active: Trade active after reaching the $29,300 zone.

Take profits can be the following levels.

Price reached the yearly open and reacted strongly.

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Welcome back Jacob
+4 Reply
We shall see what happens, thanks for the analysis. This is my view:
+3 Reply
+2 Reply
That was beautiful, thanks for publishing your thoughts!
+1 Reply
+1 Reply
Good idea
+1 Reply
Where is this bullish RSI divergence?
+1 Reply
Well articulated. I concur for what it's worth.
+1 Reply
Shorted from 35k, now kind of hoping for price to stabilize. Lets see:
+1 Reply
Much faster than expected. Changes everything no? RSI being what it is
+1 Reply
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