Excellent little dip going on the 4-hour chart. Yesterday I had anticipated the possibility of a couple of dip possibilities, but now that one has started, I think there are some interesting possibilities.
On the down side, BTC is near support for the upper trend line (purple dotted lines) of which I spoke of yesterday, and if that breaks, then BTC could likely be headed to support at 51K (green dashed lines, which also represents a Fibonacci retracement line). This would then leave 43K as a number to VERY closely watch in my opinion, since if BTC falls below that, it is in a double top situation and read for a short.
However, on the upside, despite there being slight bearish divergence that started a couple of days ago (check out my previous posts if interested), there is now some fairly visible hidden bullish divergence going on on the 4-hour chart. As the price has climbed higher and higher, it appears the RSI has dipped lower instead (dashed green line on RSI). What is interesting as well is that RSI too is nearing a support line that has been forming since the end of the initial drop on February 23rd.
Hence I figure there is also a good possibility that this could bounce and end up in the positive purple channel such that if the all-time high were to break, it could potentially lead to an upward jump rather easily. That would likely need a couple of taps against the purple trend line in the next few hours, but I anticipate if SPX were to hold up today, BTC might trend upward with it.
Still a lot of time left on the 4-hour chart to determine which direction this may go (the lines also have not fully touched yet, so likely still a little more dipping to occur until the afternoon or evening at least), and the daily chart looks concerning if there is a close today around this price, but this is definitely a good data point to watch in my opinion. I think there is still some time to watch to be certain (until the divergence solidifies), but definitely something to keep an eye on as the day progresses, particularly if there is a return back upward and then another slight dip back downward.
I'm also curious if others feel similarly or see anything I am missing, particularly with the divergence. If so, please leave a comment as opinions are always welcome.
On the down side, BTC is near support for the upper trend line (purple dotted lines) of which I spoke of yesterday, and if that breaks, then BTC could likely be headed to support at 51K (green dashed lines, which also represents a Fibonacci retracement line). This would then leave 43K as a number to VERY closely watch in my opinion, since if BTC falls below that, it is in a double top situation and read for a short.
However, on the upside, despite there being slight bearish divergence that started a couple of days ago (check out my previous posts if interested), there is now some fairly visible hidden bullish divergence going on on the 4-hour chart. As the price has climbed higher and higher, it appears the RSI has dipped lower instead (dashed green line on RSI). What is interesting as well is that RSI too is nearing a support line that has been forming since the end of the initial drop on February 23rd.
Hence I figure there is also a good possibility that this could bounce and end up in the positive purple channel such that if the all-time high were to break, it could potentially lead to an upward jump rather easily. That would likely need a couple of taps against the purple trend line in the next few hours, but I anticipate if SPX were to hold up today, BTC might trend upward with it.
Still a lot of time left on the 4-hour chart to determine which direction this may go (the lines also have not fully touched yet, so likely still a little more dipping to occur until the afternoon or evening at least), and the daily chart looks concerning if there is a close today around this price, but this is definitely a good data point to watch in my opinion. I think there is still some time to watch to be certain (until the divergence solidifies), but definitely something to keep an eye on as the day progresses, particularly if there is a return back upward and then another slight dip back downward.
I'm also curious if others feel similarly or see anything I am missing, particularly with the divergence. If so, please leave a comment as opinions are always welcome.
