In my last TA I indicated that BTC would drop to $7.9-$8k region (blue box on the chart). I also pointed out how this drop would result in an RSI pattern, seen twice since December, which has resulted in bulls regaining temporary control when looking at the 4hr charts (www.tradingview.com/...arket-consolidation/).
As I write this we are at $7750 and I'm looking at the 24hr BTCUSD chart for this analysis.
If the current price holds for the next 24hrs then 2 interesting patterns will have formed
1. MACD bullish divergence (and MACD is also shaping up for a bull cross over)
2. RSI bull divergence
However, a follow on from bulls regaining control here is that a bearish wedge is forming on the 24 hour chart. Another possibility I include is a tumble down to retest $6k or lower because there is still a significant amount of FUD in the market right now.
I also point out an RSI resistance level at 60 where it will be a good future sell point for those who are into day trading.
To summarise, If the price holds above 7.6-8k for the next 24hrs then two indicators show that bulls can regain control and there is a high likelihood of the more long term bear wedge forming. Regarding the bear wedge, the price would have to increase back to $10k at least for the wedge to be considered truly formed.
Yours in Crypto,
T-dawwwg.
As I write this we are at $7750 and I'm looking at the 24hr BTCUSD chart for this analysis.
If the current price holds for the next 24hrs then 2 interesting patterns will have formed
1. MACD bullish divergence (and MACD is also shaping up for a bull cross over)
2. RSI bull divergence
However, a follow on from bulls regaining control here is that a bearish wedge is forming on the 24 hour chart. Another possibility I include is a tumble down to retest $6k or lower because there is still a significant amount of FUD in the market right now.
I also point out an RSI resistance level at 60 where it will be a good future sell point for those who are into day trading.
To summarise, If the price holds above 7.6-8k for the next 24hrs then two indicators show that bulls can regain control and there is a high likelihood of the more long term bear wedge forming. Regarding the bear wedge, the price would have to increase back to $10k at least for the wedge to be considered truly formed.
Yours in Crypto,
T-dawwwg.
Comment:
Also the blue boxes overlayed on the RSI were left there by accident. Please ignore.