Bitcoin: Caution required. Possible reversal signal.
The last 2+ weeks have been perfect for Bitcoin and as we predicted on this Adam and Eve formation
, it found strong support above 3,300 and broke above the Resistance on 1D (RSI = 74.500, MACD = 122.00). Not only was the Resistance broken but the price also broke above the 50DMA, 100DMA and 200WEMA.
However, the very same pattern occurred in 2015 after that bear market's made its January low. After the price broke above the Triangle and the Ichimoku Cloud, it reversed and tested again the point of its rise before dropping even slightly further and consolidate.
A similar scenario can take place now as the Ichimoku cloud is squeezed, the 50DMA, 100DMA prepare to get crossed and the RSI is getting overbought.
This indicates that buyers should approach this with caution and book some amount of the profits made in the past +2 weeks. There should be more opportunites to buy again lower.
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However, the very same pattern occurred in 2015 after that bear market's made its January low. After the price broke above the Triangle and the Ichimoku Cloud, it reversed and tested again the point of its rise before dropping even slightly further and consolidate.
A similar scenario can take place now as the Ichimoku cloud is squeezed, the 50DMA, 100DMA prepare to get crossed and the RSI is getting overbought.
This indicates that buyers should approach this with caution and book some amount of the profits made in the past +2 weeks. There should be more opportunites to buy again lower.
** If you like our free content follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas. **
Comments and likes are greatly appreciated.
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www.investingscope.com
Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial
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