The dip keeps on dipping.
The good news? We were obviously prepared. I turned short term bearish early last weekend and my bias has not changed. Although it pains me to share negative analysis on Bitcoin, it is my duty to objectively share what I see. When price had the ugly weekly candle and wick up to $49,000, then continued to lose support and MAs on multiple time frames, downside became more likely than upside.
Everyone wants to know when the dip will end. Well, so do I! But we can take a look at key level and metrics that I always look for.
First, I would like to see daily RSI hit oversold after being overbought at the top with bearish divergence. Oversold is inevitable at some point, let’s get it over with. Second, I like seeing bullish divergence with oversold RSI on the 4-hour chart as a signal - we could get that soon. Third, I want to hear people saying that we are dead.
For now, we have a daily demand zone in the high $37,000s that I am watching. There are a number of supports levels between current price and here on multiple time frames as well.
You may remember that $38,600 was a key resistance on the way up, that the current area marks the zone where price crashed after LUNA.
Bottom line, there is a lot of support here. This area is very interesting. Below it, we start talking abotu $35,000 and $32,000 as ballparks.
The good news? We were obviously prepared. I turned short term bearish early last weekend and my bias has not changed. Although it pains me to share negative analysis on Bitcoin, it is my duty to objectively share what I see. When price had the ugly weekly candle and wick up to $49,000, then continued to lose support and MAs on multiple time frames, downside became more likely than upside.
Everyone wants to know when the dip will end. Well, so do I! But we can take a look at key level and metrics that I always look for.
First, I would like to see daily RSI hit oversold after being overbought at the top with bearish divergence. Oversold is inevitable at some point, let’s get it over with. Second, I like seeing bullish divergence with oversold RSI on the 4-hour chart as a signal - we could get that soon. Third, I want to hear people saying that we are dead.
For now, we have a daily demand zone in the high $37,000s that I am watching. There are a number of supports levels between current price and here on multiple time frames as well.
You may remember that $38,600 was a key resistance on the way up, that the current area marks the zone where price crashed after LUNA.
Bottom line, there is a lot of support here. This area is very interesting. Below it, we start talking abotu $35,000 and $32,000 as ballparks.
scott.melker@texaswestcapital.com