Basic Technical Analysis #BTC
1. Recent Trend:
There is a strong recovery from the low at $74,508, with a long green candle and high volume (likely a strong buying area or technical bounce).
After that, BTC made an upward move with several higher highs and higher lows, but seems to be losing strength.
2. Current Candles:
The last candles are red, with larger bodies and not much lower wick, indicating bearish pressure.
There is a pattern of descending highs, which suggests that we could be in a correction or short-term trend change.
3. RSI Indicator:
RSI at 29.03, indicating oversold conditions. This could suggest a possible bounce or upcoming consolidation, although it does not guarantee an immediate turnaround.
4. Volume:
Low volume in the last candles, which may signal a lack of strength in the current bearish movement, or that the market is waiting for some confirmation.
In summary, possible short-term scenarios:
1. Technical Bounce: Given the low RSI and proximity to support levels (like $77,313 or even the previous low at $74,508), we could see a green recovery candle if buying volume comes in.
2. Bearish Break: If the support at $77,300 is broken strongly, we could see a drop towards the next strong support in the $75,900 - $74,500 area.