It's been an incredible week of selling that has brought lots of fear into the market and shaken a lot of people out.
At this point here at the 50k level, I am bullish for a short term reversal up to the 56k level. After that, another analysis will need to take place.
Reasons for expecting a reversal.
1. Daily RSI is at its lowest since March 2020. Only slightly above the oversold level.
2. Daily trendline from Dec 2020 is still in tact. Wicks piercing below mean nothing, it's all about the body. See black line on my chart. This is the last daily bullish trendline.
3. The fear and greed index for crypto has hit "fearful" (37) alternative.me/crypt...ar-and-greed-index/. You know the saying, sell when people are greedy (last week - extreme greed 76), buy when people are fearful.
At this point here at the 50k level, I am bullish for a short term reversal up to the 56k level. After that, another analysis will need to take place.
Reasons for expecting a reversal.
1. Daily RSI is at its lowest since March 2020. Only slightly above the oversold level.
2. Daily trendline from Dec 2020 is still in tact. Wicks piercing below mean nothing, it's all about the body. See black line on my chart. This is the last daily bullish trendline.
3. The fear and greed index for crypto has hit "fearful" (37) alternative.me/crypt...ar-and-greed-index/. You know the saying, sell when people are greedy (last week - extreme greed 76), buy when people are fearful.