With continued strength the stronger the need for a retrace becomes. A clear bearish divergence on the daily RSI hints that it may be on the horizon.
Since BTC created the recent high, the 0.618 fib from the March low point now lines up almost perfectly with the 2017 ATH support level. This level would also coincide with a ~30% drop from current highs.
We can observe that the 50 day moving average has now reached the 2017 ATH region, and similar to the Kijun, price has not tested it for quite a while.
The daily Kijun sits just shy of $21,000 and if price did correct to the Kijun it may wick lower to test the 2017 ATH around $19,450.
Therefore, in terms of a technical retrace we would be placing bids in the marked yellow box area.
While we have seen BTC make healthy corrections like this in the past, it is unknown if it can fall by this much in the current day. With institutional investment eager to keep buying, and retail FOMO adding slightly more pressure to this, BTC may not be able to correct as much as some would like.
Seasoned traders will likely take some profit soon on their portfolios. Many will want to keep one foot in the door by only selling a portion of their portfolio. This will allow for some fiat to remain in the sidelines should a healthy correction happen.
Long term bullish, short term a needed correction will likely occur.
Since BTC created the recent high, the 0.618 fib from the March low point now lines up almost perfectly with the 2017 ATH support level. This level would also coincide with a ~30% drop from current highs.
We can observe that the 50 day moving average has now reached the 2017 ATH region, and similar to the Kijun, price has not tested it for quite a while.
The daily Kijun sits just shy of $21,000 and if price did correct to the Kijun it may wick lower to test the 2017 ATH around $19,450.
Therefore, in terms of a technical retrace we would be placing bids in the marked yellow box area.
While we have seen BTC make healthy corrections like this in the past, it is unknown if it can fall by this much in the current day. With institutional investment eager to keep buying, and retail FOMO adding slightly more pressure to this, BTC may not be able to correct as much as some would like.
Seasoned traders will likely take some profit soon on their portfolios. Many will want to keep one foot in the door by only selling a portion of their portfolio. This will allow for some fiat to remain in the sidelines should a healthy correction happen.
Long term bullish, short term a needed correction will likely occur.
