- To begin with, it's important to note that we have broken out of the descending resistance on the weekly chart (marked by the blue )
- This is a resistance that valid for over 2 years
- Now that we have broken out of this resistance, it is now a resistance-turned-support
- We saw a pullback; a correction in the price to retest the support, before rallying further upwards
- This was a pullback that I have anticipated, and also mentioned in my previous analysis:
- Bitcoin broke out through the 0.5 resistance, and hit the 0.618 levels yesterday
- Overall, this has created a clear uptrend with higher lows and higher highs, and prices trading within an ascending
- We can also notice the signs of a reversal, as prices have been painting a reverse pattern
- While the ( ) can be concerning, as it is reaching overbought territories, we can see from past technical indicators that the entering overbought regions does not necessarily indicate the end of a
- We can also see that there is a lot of momentum, as the Moving Average Convergence Divergence ( ) has formed a golden cross, immediately after forming a death cross
In summary, Bitcoin's overall trend is very . Since the trend is your friend, the best strategy is to buy the dip, until Bitcoin provides a clear confirmation of a trend reversal. Simplicity is key.
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