Nobody knows where Bitcoin is going although there are telltale signs.
RSI – has a Bearish Divergence
MACD – has a Bearish Divergence
Price – is Distant from its 21 Week Moving Average
Chart Pattern – has a Rising Wedge
You may think this is a perfect recipe for a reversal due to the fact that both the RSI and MACD have Bearish Divergences.
Although, given that the indicator are divergent to what price action is doing you may have a point and plus every asset always, always reverts to its price average.
But the only King of the charts is PRICE ACTION.
Let’s Keep It Simple Stupid.
So, the very thing that I am currently closely watching now here on this chart is the GREEN SUPPORT LINE of the Rising Wedge.
Obviously, if Bitcoin breaches support, there will be a likelihood of a reversal and the 21 Week MA is the most expected destination. If this is the scenario that will play out, then I’m getting ready to BUY.
And we also don’t disregard that the crypto markets sentiment is now at Extreme Greed levels. That’s another recipe to this boiling cauldron of unsuspecting retailers FOMOing.
Alright traders, courteous comments welcome in the comments section below.
Send me your thoughts.
More power to all your trades, my friends!
Have an awesome weekend!
Make it great!