Bitcoin needs to be corrected?
Over the past 24 hours, BTC has rebounded from $ 7,700 to $ 7980 at the time of writing. However, many people are sure that bulls have come back and stayed here, especially given the speculators’ failure to continue to cut digital assets after last weekend’s drop.
However, many have come to the conclusion that withdrawal to the main trend levels is only a matter of time. In a recent tweet, analyst Teddy, who drew attention to Pitcullin’s weekly chart, explained that “any direction, regardless of bias, should retreat” and confirm its direction. BTC is expected to do so by declining to take advantage of the 21-week exponential moving average (EMA), which is currently at low levels of $ 6,000 for the currency.
If the BTC indicator bounces, this indicates a bullish trend. If it falls, this will be a bearish signal, indicating that buyers have lost control of the market.
Teddy predicts that moving to low levels of $ 6,000, about 20% to 25% lower than current prices, could happen anytime during the next three weeks, as the BTC contacts the EMA for 21 weeks every 70 to 90 days or about that.
TraderX0 on Twitter commented on this analysis but used a different moving medium to provide a similar point. According to Ethereum World News, the trader explained that the BTC touched Emma 100 days seven times during the last round. This continuous support along a single technical direction is set in the direction of 2017. Here it is that PeteCave has not yet budged with the 100-day exponential moving average.
Just like the 21-week EMA, the EMA sits for 100 days also at the $ 6,000 level. This further confirms the theory that within the next few weeks, Bitcoin can easily return to $ 6,000 to create a strong base for an impending bullish rebound.
Technical signs are imminent sales
This is not the only sign of concern, and no mistake.
From a simple point of view to price action, the fact that Bitcoin has failed to recover $ 8200 for several days is appalling. The CryptoBirb analyst noted that the BTC is not in a good place at the moment, ending a short term mid-term trend (the trend supporting jogging from $ 5,000 to $ 9000), a sharp short term uptrend, Dollars.
Technical indicators are not very reassuring. A RJ Killmex analyst warned investors earlier this week that the three-day structure of Petkewin is now full of worrying signs. RJ explains that Bitcoin now looks as if it was at a December low of $ 3,200 but is reversed or reversed. As shown below, Bitcoin is currently experiencing a bearish divergence on the RSI, which is characterized by high prices and a bearish trend in the trend indicator. What’s more, the MACD is about to flop in red and the cross below the balance.
All this indicates a short-term bearish trend at the very minimum and possibly even a reversal trend.
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Tschorsch, Florian; Scheuermann, Björn (2016). “Bitcoin and Beyond: Bitcoin Is Preparing to Rectify by 25% Despite the BTC rebound. 18 (3): 2084–2123. doi:10.1109/comst.2016.2535718
Jerry Brito & Andrea Castillo (2013). “Bitcoin: Bitcoin Is Preparing to Rectify by 25% Despite the BTC rebound. Archived (PDF) from the original on 21 September 2013. Retrieved 22 October 2013.