BITCOIN - It's time for another correction
Bitcoin is again pushing up to new highs, Currently in the higher time frame the price is moving in a parallel channel(day) and we are only 10% away from all-time high.
There are some confluences that shows Bitcoin need some correction. First of all, we are approaching a strong supply zone, which indeed tells that price may get rejected from that zone. Also, the price is moving towards the supply zone in an ascending wedge. This indicates slowing momentum, and it usually precedes a reversal to the downside. So on the break of the wedge pattern, we might see some small bearish price actions.
Next confluence is the RSI(Relative strength index), which is an indicator which is a momentum indicator used in technical analysis that measures the magnitude of recent price changes. In the 4-hour chart, the momentum keeps going down, but the price is moving up, which indicated RSI divergence. An RSI divergence shows traders when price action and the RSI are no longer showing the same momentum. This also indicates that the price may go down.
These are some confluences I could find on the chart which indicated the price need some correction.
If this plays out, the immediate support would be at 53000 followed by 50000.
Thank you, have a great trading day ahead.
There are some confluences that shows Bitcoin need some correction. First of all, we are approaching a strong supply zone, which indeed tells that price may get rejected from that zone. Also, the price is moving towards the supply zone in an ascending wedge. This indicates slowing momentum, and it usually precedes a reversal to the downside. So on the break of the wedge pattern, we might see some small bearish price actions.
Next confluence is the RSI(Relative strength index), which is an indicator which is a momentum indicator used in technical analysis that measures the magnitude of recent price changes. In the 4-hour chart, the momentum keeps going down, but the price is moving up, which indicated RSI divergence. An RSI divergence shows traders when price action and the RSI are no longer showing the same momentum. This also indicates that the price may go down.
These are some confluences I could find on the chart which indicated the price need some correction.
If this plays out, the immediate support would be at 53000 followed by 50000.
Thank you, have a great trading day ahead.
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