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Bitcoin's Consolidation at 28/28.5k Areas Suggests Possible Retest of 25k Areas
Bitcoin, the world's most popular cryptocurrency, has been consolidating in the 28/28.5k areas for some time now. This consolidation phase suggests that a possible downside move may be in the cards, with the 25k areas being the likely target for a retest.
One of the key indicators that support this bearish scenario is the RSI (Relative Strength Index), which is currently in overbought territory on the daily timeframe, with readings above 60 points. This level of RSI typically suggests that an asset is due for a corrective move.
Furthermore, the wave 5, which was previously discussed, is now completed, and any further extension would require a breakout above the 29k areas. However, the current price movements and volume do not seem to support such an upward move anytime soon.
Given the current market conditions, the best trading strategy, in my opinion, would be to sell around the 28.4/28.5k areas, with a stop-loss set above 29k. For those trading on leverage, it is advisable to use a low leverage of 3-5x maximum to minimize potential losses.
Overall, while there is still some uncertainty in the crypto market, the consolidation phase at the 28/28.5k areas and the overbought RSI suggest that a corrective move may be imminent, with the 25k areas being a likely target for a retest. As always, it is crucial to stay up-to-date with the latest market developments and adjust trading strategies accordingly.
Good Luck And Have A Nice Weekend
Bitcoin's Consolidation at 28/28.5k Areas Suggests Possible Retest of 25k Areas
Bitcoin, the world's most popular cryptocurrency, has been consolidating in the 28/28.5k areas for some time now. This consolidation phase suggests that a possible downside move may be in the cards, with the 25k areas being the likely target for a retest.
One of the key indicators that support this bearish scenario is the RSI (Relative Strength Index), which is currently in overbought territory on the daily timeframe, with readings above 60 points. This level of RSI typically suggests that an asset is due for a corrective move.
Furthermore, the wave 5, which was previously discussed, is now completed, and any further extension would require a breakout above the 29k areas. However, the current price movements and volume do not seem to support such an upward move anytime soon.
Given the current market conditions, the best trading strategy, in my opinion, would be to sell around the 28.4/28.5k areas, with a stop-loss set above 29k. For those trading on leverage, it is advisable to use a low leverage of 3-5x maximum to minimize potential losses.
Overall, while there is still some uncertainty in the crypto market, the consolidation phase at the 28/28.5k areas and the overbought RSI suggest that a corrective move may be imminent, with the 25k areas being a likely target for a retest. As always, it is crucial to stay up-to-date with the latest market developments and adjust trading strategies accordingly.
Good Luck And Have A Nice Weekend