BTCUSD Top Retest
Technical analysis:
Taking a look at the historical data of BTCUSD, we can see that reversals tend to happen during a failed retest of a recent high. These will be confirmed with 4 indicators:
1. There will be a lower high on the price chart and will become the most evident clue to a succeeding correction.
2. The RSI will retry the oversold 70 mark but will be less in strength compared to the previous up move.
3. The ATR indicator will start to point down showing the end of a big move.
4. The MACD will yield a lower high close to the zero mark dictating the decrease in interested buyers.
Since there are still no obvious signs of a reversal as the 4 indicators are still yet to be shown, BTCUSD will still try to push and rise above the previous 60k high. Moving averages are still in play and support lines are still intact making large downward moves harder to materialize in the near term.
The market still has room to go down but the optimism around news and the hype of cryptocurrencies may prove to move BTC higher. This is a good thesis considering that the cryptocurrency market is now being backed up by big banks, investors, and companies. These will bring in significant buying power to push even higher unless the big sellers will start selling forcing these 4 indicators to show up.
If all goes well and bitcoin does break the previous 60k high, then we wouldn't be surprised to see it rising so soon to the 80k-100k mark. At that point, we might have to start rethinking our crypto investment since it will be the prices will be overextended and there will be a relatively high probability of a big correction at that point.
Looking forward to the next weeks to come and let's keep on learning. TAYOR.
Taking a look at the historical data of BTCUSD, we can see that reversals tend to happen during a failed retest of a recent high. These will be confirmed with 4 indicators:
1. There will be a lower high on the price chart and will become the most evident clue to a succeeding correction.
2. The RSI will retry the oversold 70 mark but will be less in strength compared to the previous up move.
3. The ATR indicator will start to point down showing the end of a big move.
4. The MACD will yield a lower high close to the zero mark dictating the decrease in interested buyers.
Since there are still no obvious signs of a reversal as the 4 indicators are still yet to be shown, BTCUSD will still try to push and rise above the previous 60k high. Moving averages are still in play and support lines are still intact making large downward moves harder to materialize in the near term.
The market still has room to go down but the optimism around news and the hype of cryptocurrencies may prove to move BTC higher. This is a good thesis considering that the cryptocurrency market is now being backed up by big banks, investors, and companies. These will bring in significant buying power to push even higher unless the big sellers will start selling forcing these 4 indicators to show up.
If all goes well and bitcoin does break the previous 60k high, then we wouldn't be surprised to see it rising so soon to the 80k-100k mark. At that point, we might have to start rethinking our crypto investment since it will be the prices will be overextended and there will be a relatively high probability of a big correction at that point.
Looking forward to the next weeks to come and let's keep on learning. TAYOR.
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