BTC - diamond patter pullback follow-up
Hello,
One month ago I posted a bearish scenario for BTC where the potential diamond formation could drive its price below $40,000
What we see today is that even though the coin dropped below the projected support (January peak) and turned it into resistance, so we are now basically stuck in the $40,000-$33,000 range which more or less marked the lows and highs back in the first month of the year.
What is more important is how the lower boundary of the downtrend corridor built as a continuation of the diamond figure now act as a dynamic resistance.
The price decline and series of rejections suggest we can expect a further decline and narrowing price action between the dynamic and the horizontal resistance. This, combined with the rising RSI values on the daily timeframe, which currently represents a bullish divergence on that timeframe, can result in an upside reversal by the end of June or early July.
Hope you found that idea interesting. Don't forget to manage risk appropriately.
Best Regards,
One month ago I posted a bearish scenario for BTC where the potential diamond formation could drive its price below $40,000
What we see today is that even though the coin dropped below the projected support (January peak) and turned it into resistance, so we are now basically stuck in the $40,000-$33,000 range which more or less marked the lows and highs back in the first month of the year.
What is more important is how the lower boundary of the downtrend corridor built as a continuation of the diamond figure now act as a dynamic resistance.
The price decline and series of rejections suggest we can expect a further decline and narrowing price action between the dynamic and the horizontal resistance. This, combined with the rising RSI values on the daily timeframe, which currently represents a bullish divergence on that timeframe, can result in an upside reversal by the end of June or early July.
Hope you found that idea interesting. Don't forget to manage risk appropriately.
Best Regards,
