BTCUSD weekly- consolidation and preparation for strong move
On weekly, BTCUSD is a falling wedge pattern which is an extremely bullish pattern but only when there is a breakout. Consolidation in the last 8 weeks is on decreasing volume which could be signed BTCUSD didn't have a bottom and the direction of the market will continue.
Volume is decreasing which after so strong leg down is more bearish than bullish.
RSI has a strong bullish divergence meaning the price is falling while the relative strength of the asset is not, which is bullish.
MACD also has positive divergence which could be more bullish than bearish.
Overall: there is a high possibility BTCUSD will move inside the falling wedge pattern. A weekly close above the upper trend line and a falling 20-month MA would indicate a very strong move in bitcoin with a possible target of the 23-24000 area.
However weekly closing below the last low would indicate we will go towards July 2020 high or even lower.
Volume is decreasing which after so strong leg down is more bearish than bullish.
RSI has a strong bullish divergence meaning the price is falling while the relative strength of the asset is not, which is bullish.
MACD also has positive divergence which could be more bullish than bearish.
Overall: there is a high possibility BTCUSD will move inside the falling wedge pattern. A weekly close above the upper trend line and a falling 20-month MA would indicate a very strong move in bitcoin with a possible target of the 23-24000 area.
However weekly closing below the last low would indicate we will go towards July 2020 high or even lower.
Consistency is the key of success....
There is still a possibility for bitcoin to visit 23-24.000 areas but to start we need to close on DAILY above FTX collapse high and keep above it, or to be more specific close above 21 480 area
Still, I am not sure it is a new bull market. Would like to see to retest the bottom and than bounce up.