Caution! Bitcoin Is Getting Wedgy
Bitcoin did exactly what I was fearing in the last Cardano analysis: It broke above with very weak power. This leads to a very *Wedgy* pattern now, the RSI divergence perfectly underscores this: We're making Lower Highs (LH) on the RSI, while the price is making Higher Highs (HH).
We can also perfectly see this on the Weekly timeframe:
So what are the options here?
=> I've put in one potential scenario with the white lines: Once we break the Wedge, it's not the end of the world. Bitcoin will then probably go into a 'smoother' sideways consolidation down to $55-45k.
The second option is: Breaking out of the wedge to the upside. This will require a lot of more effort from the bulls than we're currently seeing, and would most certainly negate the RSI divergence (the 'tiring' of the bulls) that we're currently watching. => This is the more unlikely scenario.
All-in-all, when we look on the bigger timeframe like the Monthly, you have to be aware that we're now on the 7th month straight up already, and that this is not sustainable, no matter what happens in the fundamentals of money printing: The market has to breath-in, and breath-out. Eventually.
Happy trading & investing! ;)
We can also perfectly see this on the Weekly timeframe:
So what are the options here?
=> I've put in one potential scenario with the white lines: Once we break the Wedge, it's not the end of the world. Bitcoin will then probably go into a 'smoother' sideways consolidation down to $55-45k.
The second option is: Breaking out of the wedge to the upside. This will require a lot of more effort from the bulls than we're currently seeing, and would most certainly negate the RSI divergence (the 'tiring' of the bulls) that we're currently watching. => This is the more unlikely scenario.
All-in-all, when we look on the bigger timeframe like the Monthly, you have to be aware that we're now on the 7th month straight up already, and that this is not sustainable, no matter what happens in the fundamentals of money printing: The market has to breath-in, and breath-out. Eventually.
Happy trading & investing! ;)
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