A few signals alluding to the beginning of a bearish Bitcoin
1) When the price touched the Gaussian band during a bull market, the price consolidates on the upper band and then it jumps up to eventually fake everyone out by dropping. For the past two cycles the price jumped 45% after first contact with the band before starting the bear market with a ruthless dip.
(We have made contact with and consolidated on the upper Gaussian band and we might see a similar 45% rally to 50K before being whacked)
2) The RSI always hit 97 within the bull market before hitting the Gaussian band and when this happened, it signalled the beginning of the end of the cycle.
(You can see this 97 RSI with the blue lines at the bottom)
3) Once the RSI hit 97 it goes hard for 40 on the RSI. This is the first pullback.
(You can see the yellow 40 at the bottom)
4) After 40 RSI we see a beautiful 45% rally. This is always best to get in before the run and take some profit after around a 35-40% run up because then price becomes ruthless and dips hard.
5) The Negative Directional Indicator (-DI) and the Positive Directional Indicator (+DI) are momentum indicators and we can see them as the pink and green lines at the bottom. During a bull market, the green is above the red for most of the time. During the bear market the red is above the green. Right now we have signals of a bear market.
(We have made contact with and consolidated on the upper Gaussian band and we might see a similar 45% rally to 50K before being whacked)
2) The RSI always hit 97 within the bull market before hitting the Gaussian band and when this happened, it signalled the beginning of the end of the cycle.
(You can see this 97 RSI with the blue lines at the bottom)
3) Once the RSI hit 97 it goes hard for 40 on the RSI. This is the first pullback.
(You can see the yellow 40 at the bottom)
4) After 40 RSI we see a beautiful 45% rally. This is always best to get in before the run and take some profit after around a 35-40% run up because then price becomes ruthless and dips hard.
5) The Negative Directional Indicator (-DI) and the Positive Directional Indicator (+DI) are momentum indicators and we can see them as the pink and green lines at the bottom. During a bull market, the green is above the red for most of the time. During the bear market the red is above the green. Right now we have signals of a bear market.
Comment:
Point 4 looks like is already in play. We should see a minor continuation of this bullish sentiment before price begins to fall. I will update this piece as soon as I sense weakness in the price for the drawback that will put Bitcoin in an all-out bearish movement. A couple of other factors and indicators are suggesting that this rise in price may not lead us to new ATHs. However, the markets are dynamic and subject to change so should information invalidate this piece I will change my sentiment. For now, I see Bitcoin bleeding soon in the coming weeks.