BTC Weekly Chart - MACD + Elder Force Index + RSIIn my analysis, I have used a logarithmic scale on the weekly BTC chart.
First of all, I want you to pay attention to 200 days of Moving Average Exponential it is very close to the current price of BTC at the $26976 level. With all the inflation rate that we got today 8.3% plus 50 basic points monthly raise will continue we can expect that price could test this 200 days EMA.
Also, we can see the fighting between bulls and bears for the $30000 level right now in real-time. In my opinion, it will be good to see a test and after that retest that will create a double bottom technical figure with a shape of W. Of course, bulls will try to defend this level as much as possible. It is a potential place for opening a long position.
Let's discuss the MACD, Elder Force Index and RSI indicators:
On the chart, you can see two ATH - the first one on 12 Apr 2021 ($64956) and the second one that was a little bit higher on 08 Nov 2021 ($68976), but the indicator shows us a bearish divergence that was an urgent call to start closing long position and think about short one. What's more, you can see on the diagram that it shows that the power of acceleration is dropping down and the same result occurred on the Elder Force Index - force was decreasing.
RSI was showing the same exact picture of bearish divergence as MACD. All three of them just powered each other which helps us to build a strong basis that soon will be BTC correction or even a bear trend.
Now is it time to speak about both corrections that happened on 17 May - 19 Jul 2021 and 17 Jan 2022 - 21 Feb 2022, there was bullish divergence on MACD and RSI, but not on the EFI that clearly has shown that we should be careful and watch out for the bull trap and it happens on the $48000 level.
Now the last downtrend movement has unveiled both bullish divergences on MACD and RSI.
At the present time, we have a bullish divergence on the Elder Force Index, but for me, it is not a leading indicator but more a tool that helps approve the other two indicators.
RSI shows us that it moves to the lower zone which indicates that BTC is oversold. I also depicted the Covid dropdown (09 Mar 2020) on the RSI it is on the 33.53 level, actually, at the current level and even deeper downside movement - 28.86 level (10 Dec 2018) when was the bottom of the bear market.
MACD's diagram indicates that two previous downtrend movements were more powerful where whales were selling their bags, otherwise, you can see that diagram became smaller and smaller each time, for me, it shows that price got pressure from the overall world economy and the U.S. itself, but not from the whales that still accumulate more BTC coins.
May the profit be with you!
