BTC bearish div on 4H, overbought on 1D -> EW4 to come
BTC has shown extra-ordinary bullish behaviour in comparison to other coins in the market, with little retracement at all in the past 10 days. This may change soon: the 4h chart is showing a bearish divergence. The 1D RSI shows no divergence but reached overbought, which hints that despite a retracement, we'll still go higher in a few days time because of the upwards momentum. That's consistent if we consider we're in wave 3, and that the MACD has room upwards on 1D.
For some levels to watch, according to textbooks EW3 could lead us to 9k (fib 2.618 extension of EW1 from point (2))... i wouldn't expect that with the bearish div forming on 4H, unless it is invalidated by another pump very soon taking us in the >90 RSI range. A textbook retrace from now would be around 7.8k.
I put this idea as LONG as i think we're still going up, even though i think any entry now should keep in mind a more serious retrace is to follow after wave 5.
For some levels to watch, according to textbooks EW3 could lead us to 9k (fib 2.618 extension of EW1 from point (2))... i wouldn't expect that with the bearish div forming on 4H, unless it is invalidated by another pump very soon taking us in the >90 RSI range. A textbook retrace from now would be around 7.8k.
I put this idea as LONG as i think we're still going up, even though i think any entry now should keep in mind a more serious retrace is to follow after wave 5.
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Forgot to mention, MA50 crossed above MA200. Another bullish sign.
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We are at the 1DMA200 resistance