I'm seeing some concerning signals that this trend is nearing the end. Here is what I see in order of importance:
1. We are coming up to a twice-tested resistance of around 10,500.
2. We have a potential head and shoulders formation. We hit this high in lower volume than the last breakout.
3. There is a divergence in the RSI & MACD. We are extremely overbought, and at price levels lower than we were at the last high.
4. Open Interest is in a downtrend, meaning there is less money in BTC than there was at the last high.
5. We have a hanging man candle forming for today, which is a reversal signal. Given that we are overbought already, this candle could be more significant.
6. We have had 8 straight weeks of rallying, which hasn't happened in years. We are due for a weekly red candle.
7. The halvening is arriving, which historically has meant a "buy the rumor sell the news" type of event. The effects of diminishing supply won't affect the market for a while.
Bullish signals:
1. BTC tends to stay overbought way longer than it needs to, and parabolic algorithm moves may take hold.
2. Endless fiat printing means hedge funds may be taking hedges (I still think it is too soon for that, personally).
3. I am taking a short position which means BTC will just go up and wipe me out (I'm not bitter, promise).
Stay safe out there, and good luck!
1. We are coming up to a twice-tested resistance of around 10,500.
2. We have a potential head and shoulders formation. We hit this high in lower volume than the last breakout.
3. There is a divergence in the RSI & MACD. We are extremely overbought, and at price levels lower than we were at the last high.
4. Open Interest is in a downtrend, meaning there is less money in BTC than there was at the last high.
5. We have a hanging man candle forming for today, which is a reversal signal. Given that we are overbought already, this candle could be more significant.
6. We have had 8 straight weeks of rallying, which hasn't happened in years. We are due for a weekly red candle.
7. The halvening is arriving, which historically has meant a "buy the rumor sell the news" type of event. The effects of diminishing supply won't affect the market for a while.
Bullish signals:
1. BTC tends to stay overbought way longer than it needs to, and parabolic algorithm moves may take hold.
2. Endless fiat printing means hedge funds may be taking hedges (I still think it is too soon for that, personally).
3. I am taking a short position which means BTC will just go up and wipe me out (I'm not bitter, promise).
Stay safe out there, and good luck!