TradingView
Stephan_Rush
Dec 5, 2020 5:32 PM

Bearish outlook on Bitcoin Short

Bitcoin / TetherUSBinance

Description

It looks a lot like we have a round top for BTC, it's struggling having higher highs and volume is constantly decreasing, which means that there are less and less buyers at the current price. Not only that, as we can see there are divergencies on the RSI, MFI (a very strange compression too) and the MACD.
It is a very plausible scenario that it could fall from here after having hit the previous ATH, support levels to take look at and possible targets are: 14K, 12K, 10K (there is a CME gap to be filled at 9.8K, and 9 times on 10 they have been, so...)
Comments
bestfarbit74
Libratus
Probably a good time to take profit and stop adding onto the existing position, but it's premature to flip short especially looking at daily timeframe since it could just as easily be bullish retracement as it is reversal. Daily divergence takes longer time to form and validate and if you look at a longer time frame there is a clear conflicting signal between MFI and RSI. When crypto market gets hot, oscillators become super lagging and useless and mainly serve to validate our hindsight and confirmation bias.

More