I am not convinced we have hit the bottom of this current sell-off, but we may be close. I am seeing signs of relief and a potential rally. Sell pressure is running out of steam, and buy pressure is increasing. While some are saying we have formed a double bottom, I am not convinced we are out of the woods yet.
For this daily chart I am using two indicators, RSI and TTM Squeeze.
The TTM squeeze indicator shows us that we have been seeing sell pressure ease up for several days on the daily chart. We see the same thing on the four hour chart as well. At the time of this writing we are in the middle of a squeeze on the 3 hour so we should see some volatility on the sooner side. If the TTM squeeze on the 3 hour fires right now it would be firing short, but it is very close to firing long. I am keeping an eye on this as I hate being on the wrong side of a squeeze when trying to plan a position.
I do not use RSI very often these days, but it is showing a bullish divergence from the previous lows to the current new lows. Something to consider.
Where will Bitcoin go?
I would not be surprised to see another drop to establish new lows but I do think a rally up to test previous untested highs is a very likely scenario in the near future. I am currently looking for a long entry with a very tight stop loss. This is a bear market so keep that in mind and manage your risk. A rally soon could cause a lot of FOMO and be a great opportunity. If that scenario happens be very careful and do not buy into the hype of folks calling for a bull market. A retracement would be perfectly normal price action and I will be looking at levels to short again. I am not convinced we have reached the capitulation phase of the market cycle yet and some false hope would be a great catalyst for that.
For this daily chart I am using two indicators, RSI and TTM Squeeze.
The TTM squeeze indicator shows us that we have been seeing sell pressure ease up for several days on the daily chart. We see the same thing on the four hour chart as well. At the time of this writing we are in the middle of a squeeze on the 3 hour so we should see some volatility on the sooner side. If the TTM squeeze on the 3 hour fires right now it would be firing short, but it is very close to firing long. I am keeping an eye on this as I hate being on the wrong side of a squeeze when trying to plan a position.
I do not use RSI very often these days, but it is showing a bullish divergence from the previous lows to the current new lows. Something to consider.
Where will Bitcoin go?
I would not be surprised to see another drop to establish new lows but I do think a rally up to test previous untested highs is a very likely scenario in the near future. I am currently looking for a long entry with a very tight stop loss. This is a bear market so keep that in mind and manage your risk. A rally soon could cause a lot of FOMO and be a great opportunity. If that scenario happens be very careful and do not buy into the hype of folks calling for a bull market. A retracement would be perfectly normal price action and I will be looking at levels to short again. I am not convinced we have reached the capitulation phase of the market cycle yet and some false hope would be a great catalyst for that.