Bitcoin - The True Conclusion Based on Solid Signals

In this post, there will be only facts supported by signals from the chart and indicators.

The price bounces from the resistance zone at 9000.00 level. We got a reversal candlestick pattern and a new swing high. The price diverges with MACD, ADX line, and RSI. It gives us a trend reversal signal based on a bearish divergence.

The shape of candles which we have at the resistance level also tells us that the market needs a break and the strength of sellers and buyers is at the same level. The market does not have power for breaking 9000.00 level and also the market does not have the wish to move downward.

If we look at the indicators, we will see the picture typical for the overbought markets. RSI drops from the overbought zone, and it provides a bearish signal. MACD lines are going to start falling from the top, and it will confirm the further downward movement. MACD histogram supports the downward movement, and it is a bearish signal too. DMI is bullish and supports trend market conditions, but ADX line falls telling us that buyers are not so active as before.

If we combine all the signals from candles, price action at the resistance zone, and signals from indicators, we will have to make this conclusion:
- the market has a break at the resistance level which can become a reversal zone
- the market is overbought, and it provides signals confirming at least the correction movement
- the market does not fall as the strength of buyers and sellers is at the same level.

The market will correct the previous strong upward movement, and the starting point for such correction will be a resistance zone. Will it be 9000.00 or 10 000.00 we will see, but the correction movement will be because it is the part of any trend. It's just the question of time. The market keeps support from buyers and that's why corrections can be short term and maybe not so deep. The reversal signals after correction movements should be used for opening long positions.


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By the way, this idea is still workable. We have 8000.00 and 9000.00 as signal levels which should be used for confirming the further market movement.