Why I Think Bitcoin Will Bounce
Looking at the daily chart we can see the RSI is oversold. In the history of bitcoin, every time bitcoin is oversold we see it bounce.
We are also sitting on a trend line support currently which I believe will hold due to the RSI being oversold. I have circled in black the points that bitcoin reacted to that trend line.
I have drawn trend lines lower that suggest bitcoin going to 5k or even 4k if the current trend line doesn't hold.
For sell targets I am using the Fibonacci. Typically we hit a .5 or .618 level. The .5 fib level crosses directly with the upper trend line at 8k. The apex is one month away is perfect for the bitcoin cycle. In this bear market we have seen price rise for roughly a month and the fall for roughly a month. So 8k is the most optimistic target I have. 7.6k is also a good place to take profits.
Always have stop loss and properly manage your trades.
We are also sitting on a trend line support currently which I believe will hold due to the RSI being oversold. I have circled in black the points that bitcoin reacted to that trend line.
I have drawn trend lines lower that suggest bitcoin going to 5k or even 4k if the current trend line doesn't hold.
For sell targets I am using the Fibonacci. Typically we hit a .5 or .618 level. The .5 fib level crosses directly with the upper trend line at 8k. The apex is one month away is perfect for the bitcoin cycle. In this bear market we have seen price rise for roughly a month and the fall for roughly a month. So 8k is the most optimistic target I have. 7.6k is also a good place to take profits.
Always have stop loss and properly manage your trades.
Note
Short term we are up 3%. Perfect for day tradersTrade closed: target reached
Profit: 27.94%
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.
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.