BTC: Correction Incoming? Should we Short, or Prepare to Buy?
Hello friends!
I hope you had a profitable trading week so far.
This time, I would like to express my concern for Bitcoin.
As we can see, Bitcoin had 2 consecutive rather indecisive weeks.
Usually indecisiveness means either of these 2 things:
- Bulls charging their juice for the next run, or
- Bears are absorbing the bulls and are preparing for the reversal.
In this case, I see a potential reversal cooking. At least in bigger time frame (daily or weekly) it will only look like a correction. But in intraday timeframe, it might be a reversal signs and/or good short setup potential.
MY OBSERVATION
1. We can see that there was a bearish divergence in RSI formed. See the dashed white arrow. This indicates that bulls are weakening.
2. We can see the failure of making a higher-high. See 2 yellow arrows
There 2 signs indicates that bears are ready to take action.
However, we need a third confirmation.
My analysis will be proven if the yellow bold line is broken. This will indicate that the price has formed a lower-low structure, which marks the start of a downtrend (at least in intraday timeframe)
Next Question: HOW LOW CAN BTC GO?
If you see at the weekly timeframe, Bitcoin is ranging between
13-16k zone, and
28-32k zone.
In addition, the box I draw above marks the supply zone at the weekly timeframe.
So, the worst case scenario is that BTC will go to 13-16k zone as the weekly range low.
But, assuming that the trend is still bullish, then I am marking these zones:
- 24000-24000 USD zone
- The blue trendline shown in the picture
Should we see a bullish signal in those area, we can start buying/long up to 35 or maybe 40k.
Hope you like my analysis and don't forget to share your thoughts as well
I hope you had a profitable trading week so far.
This time, I would like to express my concern for Bitcoin.
As we can see, Bitcoin had 2 consecutive rather indecisive weeks.
Usually indecisiveness means either of these 2 things:
- Bulls charging their juice for the next run, or
- Bears are absorbing the bulls and are preparing for the reversal.
In this case, I see a potential reversal cooking. At least in bigger time frame (daily or weekly) it will only look like a correction. But in intraday timeframe, it might be a reversal signs and/or good short setup potential.
MY OBSERVATION
1. We can see that there was a bearish divergence in RSI formed. See the dashed white arrow. This indicates that bulls are weakening.
2. We can see the failure of making a higher-high. See 2 yellow arrows
There 2 signs indicates that bears are ready to take action.
However, we need a third confirmation.
My analysis will be proven if the yellow bold line is broken. This will indicate that the price has formed a lower-low structure, which marks the start of a downtrend (at least in intraday timeframe)
Next Question: HOW LOW CAN BTC GO?
If you see at the weekly timeframe, Bitcoin is ranging between
13-16k zone, and
28-32k zone.
In addition, the box I draw above marks the supply zone at the weekly timeframe.
So, the worst case scenario is that BTC will go to 13-16k zone as the weekly range low.
But, assuming that the trend is still bullish, then I am marking these zones:
- 24000-24000 USD zone
- The blue trendline shown in the picture
Should we see a bullish signal in those area, we can start buying/long up to 35 or maybe 40k.
Hope you like my analysis and don't forget to share your thoughts as well