A routine correction for Bitcoin (BTC) has resulted in a 3% dip for the king of the cryptocurrencies. Horizontal support at $107,000 is holding so far. Will there be a bounce from here, or could there be further to fall?
Source: Alternative.me
A $BTC dip waiting to be bought back up
The last big 10% surge for Bitcoin finally ran out of steam at over $110,000, went sideways for a couple of days, and then fell back down on Wednesday and into Thursday. It now remains to be seen whether the bears can take a tighter grip and force the price down further, or whether the current very positive market sentiment will see this dip bought back up again.
Is a bounce about to occur?
Source: TradingView
The 4-hour time frame for $BTC reveals that the support at $107,000 is quite a good one and will be key to hold for the bulls. It can be seen that a bounce did occur at this horizontal level, but it can also be observed that the bears are trying their best to make this level fail.
At the bottom of the chart, the Stochastic RSI indicators are at the bottom, and with the 8-hour and 12-hour Stochastic RSIs on their way down it may not be too much longer before a positive price impulse takes $BTC back up again.
Daily chart points of concern
Source: TradingView
The daily time frame is showing some potential points of concern. While the price is currently holding nicely above the $107,000 support, the Stochastic RSI is showing a cross down of the indicator lines, and at the same time the RSI, at the bottom of the chart, has the indicator posturing to cross down below the moving average line (yellow).
Bull market following parabolic curve on 2-month time frame
Source: TradingView
The 2-month time frame for $BTC makes for interesting viewing. Firstly it must be noted how since the beginning of this bull market the price has kept to a parabolic curve, with the last touch of this line at around $75,000. With this curve so closely respected, the moment the price starts falling through is the moment to sit up and take notice that the beginning of a bear market could be nigh.
Near the bottom of the chart, the Stochastic RSI has the indicators near the top of their limits, but should the fast (blue) indicator line cross back above the slow (orange) indicator line this would signal a continuation of upside price momentum. The RSI at the bottom of the chart has its indicator rising above the 80.00 level. This will need to keep rising and eventually get above 91.50 in order to cancel out bearish divergence.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Credit: Source link
