Bitcoin Needs Correction To Continue Growth
Starting from the end of August, we see a strong uptrend that was been stopped at $12,100. During this time, a bullish wedge reversal pattern has formed on the chart. Given its structure, we can expect a decline to $9,600 within a few weeks.
Stochastic indicator is in the overbought zone and is forming a small bearish divergence. The unloading of the indicator will be a logical continuation, which corresponds to a fall in price.
RSI is near the upper border and will test it in the near future. However, given the current weakness of the market, a scenario is more likely, after which the indicator will go down to the lower border.
For 3 days the price chart has been testing the upper border of the Bollinger Bands. 4 candles pierced it up. This means that now there should be a decline, first to the middle line, and then to the bottom.
Considering all of the above, we expect the Bitcoin price to decrease first to $11,500 and then to $11,000. This will help unload the indicators and “throw off extra passengers”. Then, depending on the market situation, we can see a decline all the way to $10,000.
Stochastic indicator is in the overbought zone and is forming a small bearish divergence. The unloading of the indicator will be a logical continuation, which corresponds to a fall in price.
RSI is near the upper border and will test it in the near future. However, given the current weakness of the market, a scenario is more likely, after which the indicator will go down to the lower border.
For 3 days the price chart has been testing the upper border of the Bollinger Bands. 4 candles pierced it up. This means that now there should be a decline, first to the middle line, and then to the bottom.
Considering all of the above, we expect the Bitcoin price to decrease first to $11,500 and then to $11,000. This will help unload the indicators and “throw off extra passengers”. Then, depending on the market situation, we can see a decline all the way to $10,000.
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