Bitcoin Price Analysis: What Happens Now?
As mentioned in the Telegram channel, Bitcoin has nearly hit the price that we set for it over a week ago.
Bitcoin Price Analysis
https://www.tradingview.com/x/o21W6Lij/
From what we can see above, Bitcoin started taking off to the races a few days ago after the price failed to break below the $6k resistance zone (it slipped below it briefly to the $5.8k mark for about 10 minutes before quickly correcting itself back up above $6k).
However, as of now, there are reasons to be quite bearish on what’s going on.
Why Should I Be a Bear?
Great question. Below, are a list of reasons.
RSI is Ready to Tip Over
https://www.tradingview.com/x/3jkspj4s/
Above, is the 12H
https://www.tradingview.com/x/aj2fDSgw/
Above is the 8H. Heavily overbought.
https://www.tradingview.com/x/9rUyO8FJ/
Above is the 4H. Gross overbought and headed straight down. Divergence is heavy.
Price is Nudging Right Against a STRONG Resistance
As noted in our prior price analysis, $7.1k-$7.2k is one hell of a resistance point.
https://www.tradingview.com/x/PZ5SiQhr/
As you can see in the picture above, this point has served as a notable resistance (and support) for the price of $BTC in the past, and recently at that as well.
https://www.tradingview.com/x/Zrh8jUsC/
Conclusion
R/R (risk/reward) on a long position just simply isn’t worth it from this point.
Optimistically, there’s only about 6.81% more to be gained. Even if one did think that the price was on the precipice of a major bull run, the indicators are showing that a consolidation is due.
So, regardless of whether your disposition is bull or bear, it would be advisable to collect any and all profits that have been gained from this run and wait until the price action firms itself from this point.
In the author’s opinion, a modest short (not x100 leverage for you Mex junkies) might not be a bad idea either (not financial advice).
https://www.tradingview.com/x/8WG1CwI5/
As always, safe trading and, when in doubt — hedge!