Now I will present some facts supporting the increases and those supporting the deepening of the correction.
Let me start with negative signals.
1) BTC on the RSI M1 chart is at extreme overbought levels.
2) Falling volume proving a decline in demand
3) Rebound from the downtrend line.
4) Corrections on BTC in the past usually ranged from 30% to even 42%.
Positive aspects.
1) BTC is moving in a downward consolidation channel characterized by an upward break.
2) In the H1, H4 chart we have levels of big oversold, and as the history of BTC shows, it always bounces off this level and starts an upside moment.
3) In the RSI H4 Chart we reached a double bottom which indicates a trend reversal.
4) Rising valuations of Gold, SPX, indicate positive sentiment in the markets
5) Falling DXY index which makes investors more willing to move away from USD and buy assets.
6) The current declines have been very healthy for the next new highs.
From my perspective, the worst is behind us. The current moves are an outburst of stop losses and scaring weak hands. I see two scenarios, one more likely to start right now and end around 44K. The second will be a rebound to 36.5k and a continuation of declines to 27k followed by the start of further increases.
Let me start with negative signals.
1) BTC on the RSI M1 chart is at extreme overbought levels.
2) Falling volume proving a decline in demand
3) Rebound from the downtrend line.
4) Corrections on BTC in the past usually ranged from 30% to even 42%.
Positive aspects.
1) BTC is moving in a downward consolidation channel characterized by an upward break.
2) In the H1, H4 chart we have levels of big oversold, and as the history of BTC shows, it always bounces off this level and starts an upside moment.
3) In the RSI H4 Chart we reached a double bottom which indicates a trend reversal.
4) Rising valuations of Gold, SPX, indicate positive sentiment in the markets
5) Falling DXY index which makes investors more willing to move away from USD and buy assets.
6) The current declines have been very healthy for the next new highs.
From my perspective, the worst is behind us. The current moves are an outburst of stop losses and scaring weak hands. I see two scenarios, one more likely to start right now and end around 44K. The second will be a rebound to 36.5k and a continuation of declines to 27k followed by the start of further increases.