BTC 1D Showing major red flags
Updated
Hey how's everyone doing? It's been a while but I'm going to keep this explanation brief as the chart is self explanatory.
This is one of the strongest indications I look for when trying to predict price drops.
The way the MACD and RSI look together right now shows very strong potential for a sharp drop.
Keep in mind that this is the daily timeframe so it the move may not necessarily play out overnight but it is possible. Even though it is the weekend, I do feel its one of those rare weekends where we can possible see price movement.
I do think there's some potential for a move higher in the short term as I've indicated here on the 4H timeframe.
As long as BTC is below the 0.786 level on the chart (70K) there is strong potential for a 15%+ move to the downside IMO. I'd look for potential support in the lower 50K area (54K +/- 2K)
Another possibility to look out for is a quick sharp drop that plays out very fast (within a day) creating a quick wick / bullish hammer candle which would be a strong bullish indicator on the daily chart for upside continuation. The point is the possibility for the move down before upside continuation is very high.
As I've mentioned, Invalidation point would be a move above 70K. That's all for now. Take care & Trade safe.
This is one of the strongest indications I look for when trying to predict price drops.
The way the MACD and RSI look together right now shows very strong potential for a sharp drop.
Keep in mind that this is the daily timeframe so it the move may not necessarily play out overnight but it is possible. Even though it is the weekend, I do feel its one of those rare weekends where we can possible see price movement.
I do think there's some potential for a move higher in the short term as I've indicated here on the 4H timeframe.
As long as BTC is below the 0.786 level on the chart (70K) there is strong potential for a 15%+ move to the downside IMO. I'd look for potential support in the lower 50K area (54K +/- 2K)
Another possibility to look out for is a quick sharp drop that plays out very fast (within a day) creating a quick wick / bullish hammer candle which would be a strong bullish indicator on the daily chart for upside continuation. The point is the possibility for the move down before upside continuation is very high.
As I've mentioned, Invalidation point would be a move above 70K. That's all for now. Take care & Trade safe.
Note
So far things are going as predicted. We did see the short term move to the upside based off the 4hr chart but now, it appears to be time for a swift rejection. There's only 4 more hours left in this daily candle and if BTC closes at current levels (64,100) or lower then the dump-party is officially beginning.
As of now, I expect mid/lower 50K levels by end of April!
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