3.3.2021 – Bitcoin (BTC) moves in a large long-term upward channel, defined by the visible lines, A and B.
Now, he has reached the upper limits of that channel (and historical highs), and has already done a peak and moving down (today, March 3, is at ~$51k).
Two important technical indicators in relation to the change of the trend have shown a decline: the Rate Of Change (ROC) and the Relative Strength Index (RSI). You can see the bearish divergence between the (declining) indications of these two important indicators, and the price of BTC, which has recently continued to rise. Such a divergence, in relation to two important indicators (ROC and RSI), indicating a crash / collapse, may occur soon.
See the “recent” history:
The Technical Analysis indicates. The Technical Analysis has spoken and yelling because we have two and not one, important technical indicators, which foretell the major reversals. Now if one chooses to ignore it, can do it, but this is also the problem, for those who move technically: we follow the situation, because only then, trends are our friends, and of course we do not “predict” them, as in the last case, it is a fundamental technically wrong behavior, that leads to losses.
How far can it fall? Obviously, gradually, up to the levels of line B.
If you look at the long term graph, the time when the Bitcoin price is at the “low”, ie between lines B and C, is much longer than what is in the area within A and C.
I note that in points 1 and 2, the support is technically expected to be strong, because from those levels, apart from line B that passes, also passes the long-term 200 days MA.
Update 26.04.21
Panayotis Sofianopoulos
Author of
Bitcoinvest or Not? Answers to Crucial Questions.
…for those, considering investing in bitcoin and other cryptos too.
Bilingual book (English and Greek) – Βιβλίο δίγλωσσο (στα Αγγλικά και στα Ελληνικά)
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