first of all happy new year to all my fellow traders. 2020 has not been a good year in so many ways, but for crypto traders, it has been so fruitful up until now and i hope 2021 to be even better.
so my analysis for yesterday played out well. right now i am in doubt and i am going to share it with you guys.
as you can see on the chart, we are within a parallel Chanel which has been guiding the price up for quiet some time and it still looks valid and intact. at the same time there is a rising wedge (red trend line) which seems valid enough and we have already touched the resistance twice so speaking from a probability point of view, we could expect a decline and even break down. it does not by any means imply that we are entering a bear market cycle in my opinion, but it should be seen as a healthy correction with higher targets in mind.
there has been this bearish divergence on RSI for quite a while and i think it will play out eventually, sooner than later and RSI has been screaming overbought for a long time in almost all major time frames; although i have witnessed times that nobody cares about RSI, especially in a bull run, but it will eventually play out and takes us down.
all other indicators look good to me so there remains the million dollar question. where would we land in case of a break down? i think somewhere between 0.786 and 618 if the rising wedge scenario plays out, and if we continue to move within the confines of the parallel channel, it could somewhere around 0.236.
so my analysis for yesterday played out well. right now i am in doubt and i am going to share it with you guys.
as you can see on the chart, we are within a parallel Chanel which has been guiding the price up for quiet some time and it still looks valid and intact. at the same time there is a rising wedge (red trend line) which seems valid enough and we have already touched the resistance twice so speaking from a probability point of view, we could expect a decline and even break down. it does not by any means imply that we are entering a bear market cycle in my opinion, but it should be seen as a healthy correction with higher targets in mind.
there has been this bearish divergence on RSI for quite a while and i think it will play out eventually, sooner than later and RSI has been screaming overbought for a long time in almost all major time frames; although i have witnessed times that nobody cares about RSI, especially in a bull run, but it will eventually play out and takes us down.
all other indicators look good to me so there remains the million dollar question. where would we land in case of a break down? i think somewhere between 0.786 and 618 if the rising wedge scenario plays out, and if we continue to move within the confines of the parallel channel, it could somewhere around 0.236.