Bearish Correction for Bitcoin!
Good Morning TA Junkies!
Getting right into it, I want to first say that I am still very much so bullish on BTC and will continue to be so until close below my very strong trend line on my previous Idea. That being said, we are in a 1H bearish channel and price fluctuation is a great way to skim profits in markets like this so I wanted to post another idea for you all today.
At the time of typing this, BTC is seeing a price point of $7,060. with the regression line shown in my chart, I think this is a peak to this wave and the price will begin to drop. We are seeing a great fight around the $7,000 price point between the bulls and bears. Our strong support zone in this time has been $6,650 - $6,750, which conveniently makes that a support zone above my very definitive support below that shown in the chart around $6,450.
You can see yesterday the price broke free of the wedge for a brief stint and began dropping. Coincidentally, look at the bounce it did off my trend line I created 4 days ago! Once that lower support was kissed, the price shot back up into the wedge where it resides now.
I've mentioned a lot of my support lines but resistance is just as important here as our wedge is in fact bearish. Once we regained our wedge, the price continued upward and has touched the resistance line a number of times now. Unfortunately, the bears are relentless and are keeping that price below our trend line, not allowing and 1H candles to successfully close.
Our 1H RSI level is above 60 right now as well which further validates the price is beginning to become overbought. Although it's not an extreme RSI measurement by any means, looking back on trend reversals within this wedge, we can see 60 RSI tends to reverse the upward movement.
My prediction here is we will see the price drop once we peak around $7,060-$7,100 if the candles cannot close successfully. The price will double top at the trend line set and then become overbought. Once that happens, we'll see the price come back down within the wedge and if a bounce around $6,690 happens, it should be bought up quick to play the next upswing. Please take a look at my previous idea for the larger scale, 1D trend lines i've prepped as well. In the bigger picture, we're in the low end of the wedge and I firmly believe we'll remain here until the large support at $7,700 is breached successfully.
Please be careful trading in wedges such as this. With large volume, it can be broken one way or the other. Please also keep in mind that the more a support line is tested, the higher probability it will be broken. That also means the same for resistance lines so watch out when we approach these zones!
Getting right into it, I want to first say that I am still very much so bullish on BTC and will continue to be so until close below my very strong trend line on my previous Idea. That being said, we are in a 1H bearish channel and price fluctuation is a great way to skim profits in markets like this so I wanted to post another idea for you all today.
At the time of typing this, BTC is seeing a price point of $7,060. with the regression line shown in my chart, I think this is a peak to this wave and the price will begin to drop. We are seeing a great fight around the $7,000 price point between the bulls and bears. Our strong support zone in this time has been $6,650 - $6,750, which conveniently makes that a support zone above my very definitive support below that shown in the chart around $6,450.
You can see yesterday the price broke free of the wedge for a brief stint and began dropping. Coincidentally, look at the bounce it did off my trend line I created 4 days ago! Once that lower support was kissed, the price shot back up into the wedge where it resides now.
I've mentioned a lot of my support lines but resistance is just as important here as our wedge is in fact bearish. Once we regained our wedge, the price continued upward and has touched the resistance line a number of times now. Unfortunately, the bears are relentless and are keeping that price below our trend line, not allowing and 1H candles to successfully close.
Our 1H RSI level is above 60 right now as well which further validates the price is beginning to become overbought. Although it's not an extreme RSI measurement by any means, looking back on trend reversals within this wedge, we can see 60 RSI tends to reverse the upward movement.
My prediction here is we will see the price drop once we peak around $7,060-$7,100 if the candles cannot close successfully. The price will double top at the trend line set and then become overbought. Once that happens, we'll see the price come back down within the wedge and if a bounce around $6,690 happens, it should be bought up quick to play the next upswing. Please take a look at my previous idea for the larger scale, 1D trend lines i've prepped as well. In the bigger picture, we're in the low end of the wedge and I firmly believe we'll remain here until the large support at $7,700 is breached successfully.
Please be careful trading in wedges such as this. With large volume, it can be broken one way or the other. Please also keep in mind that the more a support line is tested, the higher probability it will be broken. That also means the same for resistance lines so watch out when we approach these zones!
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