After taking out a few levels of Supply between 5200-5700, Bitcoin price came to a haul at around the 5800 region and started to consolidate.
On larger timeframe it does look like a bull flag, if it does plays out, I see price going higher to challenge the next quality Supply level at 6000+ which the round number also stands for a mental barrier for buyers.
On the hindsight, I am more bearish for Bitcoin to drop and properly test 5500 level one more round before breaking lower. On the hourly chart, a rising wedge is formed with RSI on both overbought and divergence. Taking into all the evidences gathered:
- Exhaustion on the buyers after continuous rally for 4-5days
- Extremely overbought on the RSI (hit 95/100 on the indicator!)
- RSI Divergence
- Rising Wedge
Market either goes up or goes down, I am more geared towards being a seller at this point as I see more profit potential on the downside compared to the upside.
Do like and share this post. Follow me if my trading style suits you as I will be posting new trade ideas and analysis regularly.
On larger timeframe it does look like a bull flag, if it does plays out, I see price going higher to challenge the next quality Supply level at 6000+ which the round number also stands for a mental barrier for buyers.
On the hindsight, I am more bearish for Bitcoin to drop and properly test 5500 level one more round before breaking lower. On the hourly chart, a rising wedge is formed with RSI on both overbought and divergence. Taking into all the evidences gathered:
- Exhaustion on the buyers after continuous rally for 4-5days
- Extremely overbought on the RSI (hit 95/100 on the indicator!)
- RSI Divergence
- Rising Wedge
Market either goes up or goes down, I am more geared towards being a seller at this point as I see more profit potential on the downside compared to the upside.
Do like and share this post. Follow me if my trading style suits you as I will be posting new trade ideas and analysis regularly.