Has BTC reached the top and will we see a healthy correction before exploring new heights?
I received a lot of calls from friend with the question should I buy more, sell or hold.
At this moment nobody knows this answer, which is actual also not through. The big wales will dictate in what direction we will go.
What does this technical analysis is telling us:
- If we look at the 4h BTC-USDT chart we can clearly see a 4h bearish divergence.
- if we look on the monthly BTC-USDT chart we clearly see a double top .
- We also see on the weekly chart an overbought sell signal which means that RSI , Stoch RSI , Volume etc.. are in the overbought zone.
- The fear and greed index is @ 94
All those indications are an indication that we probably reached the top for the moment.
Based on those indications I would say that we could see a healthy correction. This does not mean that you need to sell all your BTC right now.
Now, when should we sell some BTC .
I will only sell when we see a clear breakdown of the 4h support line and if that line becomes resistance, and if we break down on the wedge in the OB/OS zone indicator. So if we go through this line I will not sell immediately but if we hit that line in the next wave up and we can't break it I would sell some BTC (max 25%).
Now if we go down how far can we go.
According this technical analysis we could go down for about 35% and find support on some big support line around the 0.786 fib @ 11896 USDT (always look left on the weekly chart)
This is also the lowest we could go. I don't believe we will ever see bitcoin going below $10000
Sheers,
I received a lot of calls from friend with the question should I buy more, sell or hold.
At this moment nobody knows this answer, which is actual also not through. The big wales will dictate in what direction we will go.
What does this technical analysis is telling us:
- If we look at the 4h BTC-USDT chart we can clearly see a 4h bearish divergence.
- if we look on the monthly BTC-USDT chart we clearly see a double top .
- We also see on the weekly chart an overbought sell signal which means that RSI , Stoch RSI , Volume etc.. are in the overbought zone.
- The fear and greed index is @ 94
All those indications are an indication that we probably reached the top for the moment.
Based on those indications I would say that we could see a healthy correction. This does not mean that you need to sell all your BTC right now.
Now, when should we sell some BTC .
I will only sell when we see a clear breakdown of the 4h support line and if that line becomes resistance, and if we break down on the wedge in the OB/OS zone indicator. So if we go through this line I will not sell immediately but if we hit that line in the next wave up and we can't break it I would sell some BTC (max 25%).
Now if we go down how far can we go.
According this technical analysis we could go down for about 35% and find support on some big support line around the 0.786 fib @ 11896 USDT (always look left on the weekly chart)
This is also the lowest we could go. I don't believe we will ever see bitcoin going below $10000
Sheers,
If you like my scripts/ideas please donate some coins to share your appreciation.
How far can we go?
If we don't close the 1d candle above the 0.236 fib we will probably go one fib lower to 0.368. We will probably see a ABC correction.
Watch the fib levels to buy back at the end of the ABC correction.