Are you seriously scared by this BITCOIN move?
What a great and complicated chart to make some analysis on.
Let's start.
First of all: nothing to worry, yet.
We made 10 consecutive days with a single retracement, starting around 4100$ up to 5400$.
A correction here is not only healthy, it's necessary!
As you can see from the chart, we were following a well structured channel, and today we clearly broke it, with decision. This channel will probably act as resistance in the following periods.
This dump was necessary, as the RSI was definetly too high in the daily (still above 70!): it's better to correct now 10% than 30% at $6000.
After this, we should consider the future: what will happen now?
There are two possible solutions.
I'm more for the bullish one.
The bullish solution is that BTC will find support in the 5000$ area (S1) and continue this uptrend in the following days. This would be great as in 14 days we will see the GOLDEN CROSS, which could make the new bull market start.
The other hypotesis is that this 5000$ support won't hold, and we will be back at 4700$. At 4700$ we won't have the Golden cross, and the market will decrease this bullish sentment..
From the pure technical side, you can spot that RSI has finally arrived in the oversold territory in H1 for the first time since the big pump. This could be a good buyin, if you consider the long trend as bullish..
We'll update this analysis during the next couple of days.
What do you think?
Let us know in the comments!
Let's start.
First of all: nothing to worry, yet.
We made 10 consecutive days with a single retracement, starting around 4100$ up to 5400$.
A correction here is not only healthy, it's necessary!
As you can see from the chart, we were following a well structured channel, and today we clearly broke it, with decision. This channel will probably act as resistance in the following periods.
This dump was necessary, as the RSI was definetly too high in the daily (still above 70!): it's better to correct now 10% than 30% at $6000.
After this, we should consider the future: what will happen now?
There are two possible solutions.
I'm more for the bullish one.
The bullish solution is that BTC will find support in the 5000$ area (S1) and continue this uptrend in the following days. This would be great as in 14 days we will see the GOLDEN CROSS, which could make the new bull market start.
The other hypotesis is that this 5000$ support won't hold, and we will be back at 4700$. At 4700$ we won't have the Golden cross, and the market will decrease this bullish sentment..
From the pure technical side, you can spot that RSI has finally arrived in the oversold territory in H1 for the first time since the big pump. This could be a good buyin, if you consider the long trend as bullish..
We'll update this analysis during the next couple of days.
What do you think?
Let us know in the comments!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.