Bitcoin Correction & Possible Levels for Re-entry
Given the fact that Bitcoin was unable to reach the $5000 level, the market looks to be in for a correction- and this was catalyzed by the uncertainty of China's position on Bitcoin and the crypto space in general.
Notice after each wave's correction the price bounces from the daily MA100 (these instances marked in the amber circles). I expect this pattern will continue to hold this time as well, thus I am predicting $3000-3200 to be the optimum level for re-entry and opening new long trades.
Also, take notice of the bearish divergence on the RSI (marked with the red lines) that formed prior to the correction. Price formed a higher higher, while the RSI formed a lower high during the same period- further evidence of the weakening bullish trend.
Notice after each wave's correction the price bounces from the daily MA100 (these instances marked in the amber circles). I expect this pattern will continue to hold this time as well, thus I am predicting $3000-3200 to be the optimum level for re-entry and opening new long trades.
Also, take notice of the bearish divergence on the RSI (marked with the red lines) that formed prior to the correction. Price formed a higher higher, while the RSI formed a lower high during the same period- further evidence of the weakening bullish trend.
Trade active:
Price declines as predicted, prediction holds
Trade closed: target reached:
Closed short, successful trade. Wait for a strong reversal signal to build long entries- there's still no clear sign as of now and uncertainty in the market