The top blue line 'H' represents the overall resistance trend. The bottom blue line 'L' represents the overall support trend. Notice everytime the price hit L (intersections at L_0, L_1, L_2, L_3) the RSI dipped below 30. Something similar occurs when the price hits H (intersections at H_0, H_1, H_2) the RSI is consistently above 70.
The current downward trend is represented by two green lines (you might need to zoom in). I think this trend will continue until the RSI dips below 30. I think the current RSI will dip below 30 in the next few days. However, it seems unlikely that we will intersect L this time because Bitcoin would have to go to around $3000. Bitcoin is worth ~$10,000 as I'm writing this, so that would be a 70% decrease in value! The current RSI is at ~37. There is no way a drop of 7 RSI units* would correlate with a 70% sell off. The RSI is already getting low so I think the new low will not intersect L. I think L_4 will form around the bottom yellow line at around $8000 or more. From here I think we will see a new trend following between the two yellow lines.
White arrows denote possible paths Bitcoin might take.
Let me know what you guys think...
*Don't know what else to call them ¯\_( 0_0)_/¯
The current downward trend is represented by two green lines (you might need to zoom in). I think this trend will continue until the RSI dips below 30. I think the current RSI will dip below 30 in the next few days. However, it seems unlikely that we will intersect L this time because Bitcoin would have to go to around $3000. Bitcoin is worth ~$10,000 as I'm writing this, so that would be a 70% decrease in value! The current RSI is at ~37. There is no way a drop of 7 RSI units* would correlate with a 70% sell off. The RSI is already getting low so I think the new low will not intersect L. I think L_4 will form around the bottom yellow line at around $8000 or more. From here I think we will see a new trend following between the two yellow lines.
White arrows denote possible paths Bitcoin might take.
Let me know what you guys think...
*Don't know what else to call them ¯\_( 0_0)_/¯