We’ve seen bullish and bearish news in the past hours, predictions such as $50k in the long term and much more. But, where is BTC going after this 10% drop? Should we worry?
- Support: $4600, $4185
- Resistance: $5660
- Current Price at the moment of writing this article on CoinGecko: 4840$
The Monthly and Weekly RSI, indicates that we are on the rise which means BTC wants to go in the overbought area but, for now, it failed to test the weak resistance of $5600 by getting rejected on the 9 Monthly EMA.
Looking at the weekly chart, we can see the TD Count is on the 9th candle which indicates a correction will take place soon. This is a strong indicator and the correction should be pretty big.
On the Daily chart, we have a few more confirmations of a correction that should take place. We can see that we are on the 9th TD count, overbought on the RSI and weak support.
I would expect a quick flash sell-off to around $4470 and back to the $4600 area where it should find support on the 200 Daily EMA. BTC should then consolidate for a while and if it holds, it should slowly rise and set newer highs.
If the $4600 area does not hold, the next important support is $4200 and if that does not hold, we are still in the bear market.
Since the surge was pretty big, another possible scenario would be to go past the daily EMA and directly to 4200, or further down. This is the worse scenario and I don’t believe it will happen.
Should we worry? I don’t think we should worry at the moment, but we are trading a crazy market and we should stay cautious. I am still bullish on BTC but I think this correction should take place.
Please, keep in mind that this is not financial advice, it is just me sharing my opinion. I am not a financial advisor. Always make sure to do your own due diligence before investing.