Bitcoin is slightly overbought right now, which can
be seen in the break above the cloud with the
projected cloud still bearish. After creating a double
top just above 60K price has moved down in two waves
to retest the lower cloud support, as well as the
200 SMA and almost reaching the 50% Fib of the
recent leg up. The current bounce was clearly
announced by a bullish divergence on the MACD
M15 chart (which is typical for BTCUSD in this
bull trend.)
If price holds above or inside the cloud awaiting a
bullish projected cloud twist, we will see more
upside and likely a test of previous highs. The target
of the falling channel/Flag is still in play with a
target around 69K.
Only a break and hold below the Cloud on this
H4 timeframe, will negate this bullish scenario
and we might see a deeper correction towards the
61,8 Fib up current up leg @ 54 100.
be seen in the break above the cloud with the
projected cloud still bearish. After creating a double
top just above 60K price has moved down in two waves
to retest the lower cloud support, as well as the
200 SMA and almost reaching the 50% Fib of the
recent leg up. The current bounce was clearly
announced by a bullish divergence on the MACD
M15 chart (which is typical for BTCUSD in this
bull trend.)
If price holds above or inside the cloud awaiting a
bullish projected cloud twist, we will see more
upside and likely a test of previous highs. The target
of the falling channel/Flag is still in play with a
target around 69K.
Only a break and hold below the Cloud on this
H4 timeframe, will negate this bullish scenario
and we might see a deeper correction towards the
61,8 Fib up current up leg @ 54 100.