After a new low at the end of bear cycle, market corrects in 2 waves to 61.8% from the previous bearish cycle. The bearish cycle in this chart begins after 3 requirements are fullfilled:
1. Break the bullish trendline of the correction from previous bear cycle
2. Break down the last month's daily EMA so that it becomes resistance
3. RSI breaks solidly the 40 level
In order for these requirements to be fullfilled, it can take more or less time, like it is highlighted in the elipses and it can be seen as an inflexion zone between the cycles.
We are now in the first leg down in the new bearish cycle and based on previous price action a couple of new legs can still be expected. We can notice in the past that the break of 40 RSI level never comes alone.
This chart can be watched together with the previous similar published chart:
All in all, it seems like we are still in a danger zone for prospective longs or BTC purchases, perhaps it would be wise to wait to see how it develops or wait for a breakout above 240s for the bulls waiting to buy or add another btcs to their holdings.
Thank you for the time reading and watching this published idea and good luck to you all!
1. Break the bullish trendline of the correction from previous bear cycle
2. Break down the last month's daily EMA so that it becomes resistance
3. RSI breaks solidly the 40 level
In order for these requirements to be fullfilled, it can take more or less time, like it is highlighted in the elipses and it can be seen as an inflexion zone between the cycles.
We are now in the first leg down in the new bearish cycle and based on previous price action a couple of new legs can still be expected. We can notice in the past that the break of 40 RSI level never comes alone.
This chart can be watched together with the previous similar published chart:
All in all, it seems like we are still in a danger zone for prospective longs or BTC purchases, perhaps it would be wise to wait to see how it develops or wait for a breakout above 240s for the bulls waiting to buy or add another btcs to their holdings.
Thank you for the time reading and watching this published idea and good luck to you all!
