Hello All, here I show you the details about bitcoin. Let's get started!
We have seen a huge push to the upside for the price and it's now entering the huge area of resistance too. In this chart work, I will give a highlight especially on the oscillator indicator that usually has a very important roles on my trading strategy.
Based on the RSI, we've seen a sign of bearish divergence as an indication for reversal pattern. The RSI has entered the overbought region and it has a significantly lower high on RSI but higher high on the price action.
And on the MACD, I see a potential of death cross on the MA line as the histogram is starting losing some strength with ticking down comparing the previous histogram. And if we see deeper to compare with the previous top of the histogram cycle, the histogram is having a lower high too.
The alignment between MACD and the RSI makes me believe that bitcoin will have a correction in near future. That's why I'm targeting the blue region below as a support for possible touch if this bias hold true. And although my bias is the correction is imminent, I haven't shorted the market yet. It simply because I've seen a very thick sell order around $9900 on the bitfinex. And considering there is potentially very volatile movement when the price touches that area, I'll wait for the consolidation pattern to be formed in lower time frame such as 1 hour and 2 hours time frame to enter short position.
We have seen a huge push to the upside for the price and it's now entering the huge area of resistance too. In this chart work, I will give a highlight especially on the oscillator indicator that usually has a very important roles on my trading strategy.
Based on the RSI, we've seen a sign of bearish divergence as an indication for reversal pattern. The RSI has entered the overbought region and it has a significantly lower high on RSI but higher high on the price action.
And on the MACD, I see a potential of death cross on the MA line as the histogram is starting losing some strength with ticking down comparing the previous histogram. And if we see deeper to compare with the previous top of the histogram cycle, the histogram is having a lower high too.
The alignment between MACD and the RSI makes me believe that bitcoin will have a correction in near future. That's why I'm targeting the blue region below as a support for possible touch if this bias hold true. And although my bias is the correction is imminent, I haven't shorted the market yet. It simply because I've seen a very thick sell order around $9900 on the bitfinex. And considering there is potentially very volatile movement when the price touches that area, I'll wait for the consolidation pattern to be formed in lower time frame such as 1 hour and 2 hours time frame to enter short position.
