Dear Steemit friends,
Bitcoin has enjoyed a nice run from $6000 to over $8000 in the last 2 - 3 weeks. I think it has relieved some of the pain caused by so many repeated price drops we have seen already in 2018. I hope that the recent rally continues at least long enough to break above $10000, woudn't that be nice? However, hopes and expectations differ in this instance.
Over the next couple of months, I expectations bitcoin to trend down. The reasons for these expectations are as follows. First, the 14-day RSI has reached an oversold level (see chart below). During 2018, every time RSI has touched oversold area, bitcoin price dropped significantly. Even if we don't see a significant drop this time, I expect a downward momentum.
Second, bitcoin has reached at couple of resistance lines, including the 200-day moving average and upper boundary of the pennant formation. We all want to see the next bull market in bitcoin, however, as long as the price is below 200-day moving average, we cannot confidently call a bull market.
What do you guys see on the bitcoin chart? Share your opinion in the comments, and I will be glad to upvote the meaningful ones.