Recently i made a short-term Bitcoin analysis about the Bullish scenario of Bitcoin . Since in trading we have to think in two ways (both upside and downside). So, this time am making the Bearish scenario of Bitcoin . As of now the way Bitcoin is moving somewhat similar to 2014 Bear market.
The action or movement in the RSI is little similar: The Drops = 1+2+3+4 DoubleTop = A+B BullishDivergence = 2+3 RSI pump from x to y roughly 40 to 70 level to create "B" of DoubleTop
Important Point: Divergences are something like "slow transformation of trend" ex: converting Bullish to Bearish or Bearish to Bullish . Bullish action in price = lowerLow->again->lowerLow(slowly Drop percent reduces gradually)->next->DoubleBottom or small higerLow->next->higherLow->next->higherLow(slowly percent increases gradually).
In 2014 after BullishDivergences formed "2+3" the result of next move after Divergences formed, the price+RSI has to normalize, so it made DoubleBottom in Price and higherLows in RSI .
Currently Jan2023 Bitcoin moved a massive pump right after Bullish Divergences formed "2+3", so the conclusion here is the Price+RSI has to normalize. In RSI pullback has to happen means HigherLow has to be created. So, what will be the price action I can't say exactly but it can be doubleBottom or small LowerLow/small higherLow. Not financial Advice, but IMO based on the above analysis Bitcoin may move up little and finally Bottom out to in a range of 17k to 14k.
Note: The above Analysis is only Bearish scenario of current Bitcoin action. (Only If Head and Shoulders Pattern fails.) Bitcoin-TA-2023 Short Term Analysis
Thank you, stay samrt n safe.
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Note: Even in the above Head and Shoulders pattern Bitcoin can come down to roughly 18800 usd, so in both cases Bitcoin may come down. it's better to wait and check.
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Best time to Enter: Not financial Advice but based on the above two Analysis, sometimes price moves less but RSI moves more, so best way to enter is by RSI, when the RSI pull backs to somewhere in the area of the blue circle than i guess Price+RSI gets Normalized. It is the Point of "Enter the Dragon"....
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Irrespective of Bitcoin price, if the RSI adjusts and comes down to the Blue Circle, than its a good point to enter. With this said Bitcoin may put HigherLow Or LowerLow Or DoubleBottom. This process may take some time.