🔥 Bitcoin Reversing Again: Watch For Chop!
Updated
BTC made a new yearly high 2 days ago, but has yet again failed to keep the gains (for now). The 38.000$ area is a very strongly defended area by the bears, which has resulted in an extremely choppy market for nearly a month at this point.
Longer-term oscillators like the RSI and Stochastic are still oversold, so it might be that the bulls are just waiting for these indicators to cool off. However, we have to consider the idea that the bulls can potentially lose the short-term fight and give up after yet another 38k rejection.
Share your thoughts in the comments 🙏
Key area is the bottom dotted support area. As long as the bulls can defend this area, there's nothing to worry about. However, if the bears manage to get a daily close below this important support it might signal that there's more pain to come.
Worst case bullish scenario would be a retest of the bottom support. On the other hand, the previous 3 times that we touched 38k the sell-off was much stronger and took us down more. This sell-of has thus far only been a couple of percent in 2 days.
I still hold the idea that 40k will be reached this year, but the loss of the bottom support will likely change that.
Longer-term oscillators like the RSI and Stochastic are still oversold, so it might be that the bulls are just waiting for these indicators to cool off. However, we have to consider the idea that the bulls can potentially lose the short-term fight and give up after yet another 38k rejection.
Share your thoughts in the comments 🙏
Key area is the bottom dotted support area. As long as the bulls can defend this area, there's nothing to worry about. However, if the bears manage to get a daily close below this important support it might signal that there's more pain to come.
Worst case bullish scenario would be a retest of the bottom support. On the other hand, the previous 3 times that we touched 38k the sell-off was much stronger and took us down more. This sell-of has thus far only been a couple of percent in 2 days.
I still hold the idea that 40k will be reached this year, but the loss of the bottom support will likely change that.
Note
"Longer-term oscillators like the RSI and Stochastic are still oversold"Oversold = overbought
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