This has been a perfectly executed trap! we saw the $550 level in early February followed by an inverse head and shoulder pattern that bounced us back to $1000. The next wave down took us to the $450 level and we are again looking at what appears to be yet another perfect inverse head and shoulders pattern. The majority of technical analysis out there is saying we have hit bottom. "We are going to the Moon". Bitcoin $50,000!
I invite you to step back, take your eyes off the trees and look at the forest. When we look at the big picture we clearly haven't hit bottom. The clearest indicator on this chart is ADX/DI. On it, we can see that on the weekly picture we have shifted into a bear trend. ADX also has a long way to fall before we can say we have hit bottom. We also aren't anywhere near oversold in terms of RSI. If we take a look at the monthly chart we are way overbought on RSI and stoch RSI on the monthly shows we still have a long way to fall.
Short term we could certainly go higher. However, to say we have hit bottom is irresponsible. People come to this sight and look at the "ideas" and act upon them. I feel sorry for the people who are buying in on the assumption that we have hit bottom. It may and probably will be many months before we can say we have truly hit the bottom.
I invite you to step back, take your eyes off the trees and look at the forest. When we look at the big picture we clearly haven't hit bottom. The clearest indicator on this chart is ADX/DI. On it, we can see that on the weekly picture we have shifted into a bear trend. ADX also has a long way to fall before we can say we have hit bottom. We also aren't anywhere near oversold in terms of RSI. If we take a look at the monthly chart we are way overbought on RSI and stoch RSI on the monthly shows we still have a long way to fall.
Short term we could certainly go higher. However, to say we have hit bottom is irresponsible. People come to this sight and look at the "ideas" and act upon them. I feel sorry for the people who are buying in on the assumption that we have hit bottom. It may and probably will be many months before we can say we have truly hit the bottom.