June of last year I published a post about bitcoin and the possibility of a coming bear market rally to 36k once the 18k support level finally broke down (approximate).
Well the first week of November this occurred and although we did not get the deep capitulation we would have liked to see, we find ourselves in an interesting situation with the new data we have now to go off of.
The primary piece of information being that of getting back above 18k after a failed attempt a week or so before Christmas. I did not post anything at the time of that occurring because I was not sold on the idea that it was legitimate. But fast forward to the middle of January and on the weekly chart of Bitcoin we now have not only the break back above 18k, but also classic bullish divergence showing on the weekly RSI indicator.
And if we look at the weekly RSI we can also see that there is A LOT of room to run to the upside after consolidating for SEVEN MONTHS after first going oversold in June.
And we are now getting confirmation of this bullish divergence that we were patiently waiting on by taking out the 18k resistance level and now attempting to close back above it.
Keep an eye on the Sunday close of this weekly candle on Bitcoin. As well as the coming US CPI data that is going to be released tomorrow.
If BTC can hold above this 18k level, there could be a major move to the upside that could take us well past the main target of $36000 on Bitcoin.
Meanwhile, the short term first target for this asset (if 18k holds) would be $21500.
Well the first week of November this occurred and although we did not get the deep capitulation we would have liked to see, we find ourselves in an interesting situation with the new data we have now to go off of.
The primary piece of information being that of getting back above 18k after a failed attempt a week or so before Christmas. I did not post anything at the time of that occurring because I was not sold on the idea that it was legitimate. But fast forward to the middle of January and on the weekly chart of Bitcoin we now have not only the break back above 18k, but also classic bullish divergence showing on the weekly RSI indicator.
And if we look at the weekly RSI we can also see that there is A LOT of room to run to the upside after consolidating for SEVEN MONTHS after first going oversold in June.
And we are now getting confirmation of this bullish divergence that we were patiently waiting on by taking out the 18k resistance level and now attempting to close back above it.
Keep an eye on the Sunday close of this weekly candle on Bitcoin. As well as the coming US CPI data that is going to be released tomorrow.
If BTC can hold above this 18k level, there could be a major move to the upside that could take us well past the main target of $36000 on Bitcoin.
Meanwhile, the short term first target for this asset (if 18k holds) would be $21500.
