Analyzing the recent BTC correction using simple trend lines and RSI could have provided some clues leading up to the drop.
Looking back at the correction which occurred on March 14th we can glean some clues.
At the time BTC developed bearish divergence, increasing price action with decreasing RSI. A line of resistance formed on the RSI then a blow off top occurs. Once BTC was unable to hold above the resistance line on the RSI the price action broke bearish along with it.
A correction which lasted until March 26th followed. On that day the RSI broke above the previous resistance line and price action along with RSI continued upwards once again.
A similar situation occurred here recently. A bearish divergence once again developed. A blow off top followed then a failure to hold above the resistance line and a subsequent correction.
Looking back at the correction which occurred on March 14th we can glean some clues.
At the time BTC developed bearish divergence, increasing price action with decreasing RSI. A line of resistance formed on the RSI then a blow off top occurs. Once BTC was unable to hold above the resistance line on the RSI the price action broke bearish along with it.
A correction which lasted until March 26th followed. On that day the RSI broke above the previous resistance line and price action along with RSI continued upwards once again.
A similar situation occurred here recently. A bearish divergence once again developed. A blow off top followed then a failure to hold above the resistance line and a subsequent correction.