This latest rally looks like a "dead cat bounce" to me. It's happening too fast and too soon. Yes, I know I thought we were dealing with this before. However, this time everything fits together like clockwork. Let me explain:
Moreover, if I am right and a panic sell-off to the ~$6700 level happens then a giant head and shoulders structure will most likely be formed. Of course, not immediately but probably later this year.
This is not financial advice.
- MA 50 200 death cross intersection (which never happened on the weekly chart),
- RSI despite the bullish divergence (at the bottom) follows the white trend line at the top,
- the price remains in the downward channel and bounces off its right wall,
- in addition, further upward movement was stopped by the Fibo 0.5 level,
- everything looks like a tentative retest of a huge rising wedge.
Moreover, if I am right and a panic sell-off to the ~$6700 level happens then a giant head and shoulders structure will most likely be formed. Of course, not immediately but probably later this year.
This is not financial advice.
