Already when Bitcoin was trading at $30 000 we talked about $46,500 being the prime area of resistance in this strong-likelihood ABC zigzag correction, of which we're currently in the B-wave.
As mentioned before, not only is this the 0,5 fib - it also makes full sense from a B-wave ABC perspective, in which the C-wave of the B-wave correction is typically less significant than that of the A-wave (of the B-wave).
The rather interesting addition to this area is how it's also made up from a confluence of resistance lines - two diagonal ones and one horizontal (see zoomed in version below)
If Bitcoin can overcome this - and if it can overcome the 618 fib at $50-51K (as discussed in the previous post) then we have strong cause to believe Bitcoin being on a strong bullish path. If not - if either of these two levels give in - the zigzag theory is very much in play.
My main concern at the moment is how quickly the bullish sentiment has been recovered - and to the point where one too many seem a bit too convinced of Bitcoin's fast-approaching all-time highs.
Until Bitcoin breaks above either of these levels, I will personally proceed with the utmost caution, for this zone right here between $46 000-51 000 is nothing but a technical danger zone.
And equally so, on the weekly chart, Bitcoin's RSI is currently trading right at the upper bearish blue line. To those of you who may not be familiar with these incredibly powerful techniques I advice you to watch my RSI trilogy. The baseline in short is that whenever the RSI comes down from high levels and closes on the upper bearish blue line from below, it highlights the dangers of being long. Such RSI closings on the UBB are almost always followed by steep price declines, which would further support our approaching C-wave zigzag thesis.