Here's what to expect next based on current price action.
The most important trendline to watch for upwards momentum back in this market is the orange trendline. This trendline has represented many touch points of where sellers came in and have created multiple tops since BTC's all time high of $73,800. We also saw a breakout above followed by a failed breakout. The failed breakout eventually lead us into our liquidity zone that ranges between $60,000-61,800. It is very important to see this liquidity zone hold here or we have a very good chance to drop to the "mid range".
In terms of the RSI the median line has been giving us a key signal of momentum. The green arrows represents when strength was help up by the median line (50) which lead to upwards price movements for Bitcoin./ Recently we have been holding the median line as resistance (red arrows). Since we are below strength currently favors the sell side rather than the buy side.
If we drop to oversold conditions around the 30 on the RSI should put price in the mid range.
What we want to see from a bullish perspective is for price to be supported in this "liquidity zone", to break above the orange trendline and hold the median line as support (green arrow), but for now the bears remain in control.
The most important trendline to watch for upwards momentum back in this market is the orange trendline. This trendline has represented many touch points of where sellers came in and have created multiple tops since BTC's all time high of $73,800. We also saw a breakout above followed by a failed breakout. The failed breakout eventually lead us into our liquidity zone that ranges between $60,000-61,800. It is very important to see this liquidity zone hold here or we have a very good chance to drop to the "mid range".
In terms of the RSI the median line has been giving us a key signal of momentum. The green arrows represents when strength was help up by the median line (50) which lead to upwards price movements for Bitcoin./ Recently we have been holding the median line as resistance (red arrows). Since we are below strength currently favors the sell side rather than the buy side.
If we drop to oversold conditions around the 30 on the RSI should put price in the mid range.
What we want to see from a bullish perspective is for price to be supported in this "liquidity zone", to break above the orange trendline and hold the median line as support (green arrow), but for now the bears remain in control.