BTC bullish divergence from a bull flag in a bearish channel
The next few hours/days look to be a potential "break or bounce" moment for bitcoin.
After the recent lows from January, a precipitous channel had formed and was broken upward (light-blue dashed lines) forming what looks to be a bearish channel for which the price current is dancing along the bottom (solid white lines).
What is interesting is that bullish divergence has formed for both RSI and the MACD histogram (dashed white lines) in what looks to be a short-term bull flag (dotted white lines on price). As a result, there is a possibility of a bounce here potentially toward the 50% Fibonacci retracement level toward the top of the channel (near 50K). However, should price buckle here, there is a chance that the price could continue to fall down, even to near 32-33K (recent bottoms & Fibs) and potentially even 27-28K (the longer-term 61.8% Fibonacci from the 2020 Covid drop) and beyond (i.e., 16-20K due to 78.6% Fibs).
Looking at ALTs, there is a common trend of bullish divergence, but additionally quite a few ALTs still have some room to continue downward before a bounce back upward. I should warn that ALTs typically will follow the price of BTC, and BTC typically follows the trend of the general market, which has not been looking good as of late, but should any of the ALTs form a more definitive trend, I will post about them as well.
But as always, this is solely my opinion and is not in any way meant as financial advice. But please like or comment if you agree or have any further opinions.
After the recent lows from January, a precipitous channel had formed and was broken upward (light-blue dashed lines) forming what looks to be a bearish channel for which the price current is dancing along the bottom (solid white lines).
What is interesting is that bullish divergence has formed for both RSI and the MACD histogram (dashed white lines) in what looks to be a short-term bull flag (dotted white lines on price). As a result, there is a possibility of a bounce here potentially toward the 50% Fibonacci retracement level toward the top of the channel (near 50K). However, should price buckle here, there is a chance that the price could continue to fall down, even to near 32-33K (recent bottoms & Fibs) and potentially even 27-28K (the longer-term 61.8% Fibonacci from the 2020 Covid drop) and beyond (i.e., 16-20K due to 78.6% Fibs).
Looking at ALTs, there is a common trend of bullish divergence, but additionally quite a few ALTs still have some room to continue downward before a bounce back upward. I should warn that ALTs typically will follow the price of BTC, and BTC typically follows the trend of the general market, which has not been looking good as of late, but should any of the ALTs form a more definitive trend, I will post about them as well.
But as always, this is solely my opinion and is not in any way meant as financial advice. But please like or comment if you agree or have any further opinions.