As we can see on the chart, the curved price action shows a slowdown in momentum,
Just like we saw when we reached the 60K zone before crushing down to the 30K zone.
The curve of the price shows that there is less bullish fuel that moves the price up,
and price stops moving as significantly as before.
It does not necessarily mean a trend reversal is to come,
but rather a healthy correction, especially after a long pump with zero to small pullbacks.
Right now we're testing agian the important 50K res.
A rejection of that level could be bearish, especially when it could form a double top on the 4H chart.
As resistance we meet is the golden pocket (0.618-0.65 fibonacci levels), and right below us we hold 0.5 fibonacci level.
We’re going to have to make a decision and break one of those fibonacci levels.
A break above the golden pocket could indicate that the bulls start to gain more dominance,
to the point of breaking that important resistance level, which also almost perfectly correlates with the 50K psychological level.
A break below 0.5 fibonacci level could indicate a potential dip\trend reversal.
We must remember that we still might create a lower high compared to the ATH.
A significant reverse could indicate that there aren’t enough bulls to change the entire trend we started back in April 2021.
If a pullback occurs it might hold the 42,450- 43,730 support zone.
We also want to consider the fact that we have decreasing volume while price goes up, and generally speaking no strong volume.
We’ve got an RSI bearish divergence, which correlates with the rest of the weakness shown in the market.
This weakness may cause just a dip\ consolidation before moving up again.
And just as I said before, a break above the 50K level and the golden pocket could easily bring us back to the ATH zone.
Thank you for reading :)
Just like we saw when we reached the 60K zone before crushing down to the 30K zone.
The curve of the price shows that there is less bullish fuel that moves the price up,
and price stops moving as significantly as before.
It does not necessarily mean a trend reversal is to come,
but rather a healthy correction, especially after a long pump with zero to small pullbacks.
Right now we're testing agian the important 50K res.
A rejection of that level could be bearish, especially when it could form a double top on the 4H chart.
As resistance we meet is the golden pocket (0.618-0.65 fibonacci levels), and right below us we hold 0.5 fibonacci level.
We’re going to have to make a decision and break one of those fibonacci levels.
A break above the golden pocket could indicate that the bulls start to gain more dominance,
to the point of breaking that important resistance level, which also almost perfectly correlates with the 50K psychological level.
A break below 0.5 fibonacci level could indicate a potential dip\trend reversal.
We must remember that we still might create a lower high compared to the ATH.
A significant reverse could indicate that there aren’t enough bulls to change the entire trend we started back in April 2021.
If a pullback occurs it might hold the 42,450- 43,730 support zone.
We also want to consider the fact that we have decreasing volume while price goes up, and generally speaking no strong volume.
We’ve got an RSI bearish divergence, which correlates with the rest of the weakness shown in the market.
This weakness may cause just a dip\ consolidation before moving up again.
And just as I said before, a break above the 50K level and the golden pocket could easily bring us back to the ATH zone.
Thank you for reading :)