Can the Bitcoin price finally correct?
Bitcoin (BTC) will always stay with the Proof of Work algorithm. Pictured is a Bitcoin on a circuit board.
For days, the Bitcoin price has been fluctuating around the psychologically important $60,000 mark. A sustained break of this resistance would make investors turn their hodl-folio even greener. However, we already mentioned some bearish signs in our last report. Are we in for dark weeks or is the oldest of all Bitcoin Revolution review cryptocurrencies content with a longer sideways phase?Google Subscribe
Bear alert for the Bitcoin price
Let’s first look at the Bitcoin price in the weekly view. Then we work our way down from the daily chart to the 4-hour view. Higher time units always have more weight than the lower ones. The Relative Strength Index (RSI), an indicator that shows the purchasing power, is also displayed for the Bitcoin price (at the bottom of the image).
After the Bitcoin price failed to sustainably break through the psychological mark of $60,000, it became a massive resistance. The bullish market structure is still in tact, but is at risk. In a possible correction, the lower weekly key levels form support areas.
The RSI reflects the buying power in the market and runs in the same movements as the Bitcoin price in normal market phases. Currently, however, we can see that the price is forming higher highs, but the RSI is forming lower highs. This shows an inconsistency between the two factors and calls for caution. This inconsistency will be cleared by the price through a correction or a sideways phase.
Inconsistency and falling volume
As in the week, the strong inconsistency can also be seen in the daily chart. The Bitcoin price is setting higher highs, but the RSI is marking lower ones. Moreover, the bulls were unable to achieve a significant price increase in the aftermath.
The upward correction (marked in green) is in its final stages. Trading volume is decreasing, indicating that many traders are reorienting themselves and waiting for an impulse. Should this correction exit to the downside, the next target is the key level below.
Small time unit as a possible entry point
The bearish pressure from the upper time units is having an effect in the 4-hour time frame. After the last longer upward movement, the Bitcoin price is now in an actually relatively neutral correction. However, this converging triangle (marked in orange) is being influenced by the higher time units.
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