Bitcoin | The Monthly Chart Gives It Away!

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Here we have the monthly chart for Bitcoin , we will see why some additional correction is yet to take place.

We are going to start with our classic EMA analysis, and it goes like this...

We have a peak in April 2021.
This monthly candle closed as a Doji , signaling indecision and the correction that took place next.

The correction after April's peak price in 2021 found support at EMA10.

The bounce from EMA10 didn't lead to a new high, technically.
We have a new high in November 2021 vs April, $69,000 vs $64829, but this is technically the same high.

Since the bounce off EMA10 as support did not result in a new high, the next support level to be tested on a drop is EMA50 or the next major EMA .

EMA50 is sitting at $23,750.
This is it for the EMAs.

The trading volume is super, super low.
This is never a good signal at this point.
Lowering volume can presage a drop.

The MACD has already crossed bearish , with the histogram going red and plenty of room to drop:
On the RSI , we now have the classic multiple years long bearish divergence starting in 2017:
Notice lower highs short and long-term.

The RSI has also gone below the rising trendline support.

Since it is still above 50, there is plenty of room/space available for additional drop.

We will share an updated trade idea once the monthly candle closes.

Brace yourself.
Be patient.
Plan ahead.
Buy & hold.

Many new opportunities will be developing in the days and weeks to come.


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