BitcoinUpdated BTC Daily Chart 22th November 2023
In my previous idea i was expecting BTCUSD to make a double top formation before correcting. But BTC wasn't ready consolidating yet so instead of a double top it formed a head-n-shoulders formation. In both cases it's a bearish formation that could lead to a correction towards 32K (a resistance level that still has to be tested as support).
Another sign that a correction is incoming, is the negative divergence on the RSI. While BTC price is forming an ascending channel we see a descending channel on the RSI, indicating the negative divergence which usually leads to a drop in price.
On the other hand, BTC has tested 35-35,5k three times as support. Today we also read some positive news about the spot bitcoin ETF which could create positive momentum. Although i am seeying more bearish signals, it is still possible for BTC to regain strength and perform another rally towards 38K (and three times might be the charm on breaking this resistance).
What do you think BTC will do next? Will we see a correction or a continuation rally?
BTCUSD to make a double top formation before correcting. But BTC wasn't ready consolidating yet so instead of a double top it formed a head-n-shoulders formation. In both cases it's a bearish formation that could lead to a correction towards 32K (a resistance level that still has to be tested as support). Another sign that a correction is incoming, is the negative divergence on the RSI. While BTC price is forming an ascending channel we see a descending channel on the RSI, indicating the negative divergence which usually leads to a drop in price.
On the other hand, BTC has tested 35-35,5k three times as support. Today we also read some positive news about the spot bitcoin ETF which could create positive momentum. Although i am seeying more bearish signals, it is still possible for BTC to regain strength and perform another rally towards 38K (and three times might be the charm on breaking this resistance).
What do you think BTC will do next? Will we see a correction or a continuation rally?
Note
Although i am not giving up on my idea just yet, it seems that BTC is taking a bit longer to decide on a definitive move up or down. On social media the ETF hype is being kept alive, even suggesting that it's almost 100% certain that SEC will approve all the current applications. But if this is true, why is it taking so long? In a way the current priceaction reminds me of the most recent rally where BTC unexpectedly broke above 32K, largely caused by fakenews about the ETF approval.
As long as enough people believe that the ETF will be approved, we probably won't see a correction in the BTC price. Social media will probably add keep adding fuel to this fire till there is a definitive answer from the SEC in January.
Note
Yesterday we saw a break above 38K but BTC didn't have enough momentum to make a rally and fisseled back under 38K. Rumours on the internet suggest that the break above 38K was caused by a single large account who made a large buy order, driving the price above the resistance line hoping to create a short squize and ultimately a new rally towards 40K.Looking at the 4h chart, i might have been too soon to dismiss the ascending channel. We can see that BTC did drop under the lower trendline but was able to climb back into the channel and finding enough support on the two lower trendlines (creating a bear trap).
Similarly, when BTC broke above 38K we can see that the upper trendline of the channel acted as resistance.
So even though the upper and lower channel lines were broken we can see that the ascending channel is still in effect at the moment.
Note
At the moment we can see BTC flatlining just beneath 38K. We'll probably have to wait till the end of the weekend and the start of the new trading week to see some more action. If BTC manages to break above 38K we can see a small rally towards the upper ascending channel line at 39K and after that 39,5K.
If BTC isn't able to climb above 38K we'll see a small correction back to the bottom channel line at 37K.
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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.