What is really happening with Bitcoin? A scary correction within a bullish market or the beginning of a ruthless drop? Enough guessing! Right now I will reveal to you the backstage of the crypto market and we will figure out the current situation together.
Do you remember our long-term uptrend? Unfortunately, this bastion has been breached, and this is certainly the first alarming bell. But that's not all! Look at the local highs and lows – they are relentlessly declining, painting a picture of selling pressure.
However, don’t rush to panic! These movements may be forming a bullish descending pattern, which is known to trade long on a breakout, not right now. We saw a true breakout, consolidation, and a clear retest. Where will the price go now? Is it a drop or a bounce?
Look at what the indicators are telling us:
On the 4-hour timeframe, the RSI is unloaded – this is a positive signal!
The daily chart is in a neutral zone, although with a slight hint of overbought.
However, the weekly RSI is overbought, but in a bullish market, there is still room for movement.
Monthly timeframe also in neutral zone, which gives us room for maneuver.
Based on the RSI, we have room to move upwards, but in the next week and a half, possibly two, we may see unloading of the weekly RSI and offloading of excess long positions. After all, the market is clearly overheated right now, and for further growth, it is necessary to clear the space of 'weak hands'.
🔥 Insider! Earlier I warned you about this correction! Those who follow my posts are already aware of our plan. We reached the $104,800 zone and bounced off it. Most likely, we will test this level once again, possibly not just once, or maybe we are expecting a local consolidation for that unloading of longs and RSI on the weekly timeframe.
🔑 The key level for a reversal is $101,800! I wrote about this in my Telegram channel today. A breakout and consolidation below this mark on the 4-8 hour chart will open the path to a deeper correction. But for now, I am not inclined towards such a scenario.
Why? Look at the RSI unloading. In the morning it was higher, but now it has noticeably decreased. Fundamentals and margin positions also show unloading. This indicates that Bitcoin is ready for a reversal and a bounce from the $104,800 zone right now.
Other important metrics: miners are not selling, top-10 wallets are accumulating. Nothing critical is happening.
My forecast for Bitcoin: I expect a bounce either from $104,800 or from the lower zone, aiming at least to return to historical highs and, of course, surpass them!
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