Bitcoin Analysis v1.0 - Possible Drop From Weekly StochRSI Cross
Bitcoin on the weekly timeframe appears to be tightening within two moving averages, 20MA as the resistance and the 200MA as the support.
Bitcoin may attempt to test the 20MA (purple line) again in the near future, but moving above it would be very unlikely as the Stoch-RSI is currently overbought and is setting up for a cross, not to mention, the $4200 region has shown significant resistance from previous encounters. From this perspective, we can assume that bullish price action maybe coming to an end in the coming days and a decently strong sell-off may occur. By looking at the previous cross of the weekly Stoch-RSI at this level, we can see that the price had a drop of 40% within 6 weeks time, this could become a possible scenario in the near future as the $2500 level has shown to be a significant support/resistance from previous encounters. If you are currently in Bitcoin, I would suggest retaining a portion of your holdings, but discontinue any further purchasing unless a break above the $4200 region occurs and with very strong volume.
Levels to watch (Coming Weeks):
$3150 - Previous Bottom, but risky zone to rely on
$2500 - 40% Drop Region, previously a strong support/resistance zone
$1250 to 1750 - Unlikely scenario, but possible if strong selloff occurs
Notes:
My current strategy would be to wait for confirmation in the following weeks. If the price does move according to the analysis, I would buy in 50% around the $2500 region for a bounce, and then watch for any significant movements before purchasing/selling any further.
Bitcoin may attempt to test the 20MA (purple line) again in the near future, but moving above it would be very unlikely as the Stoch-RSI is currently overbought and is setting up for a cross, not to mention, the $4200 region has shown significant resistance from previous encounters. From this perspective, we can assume that bullish price action maybe coming to an end in the coming days and a decently strong sell-off may occur. By looking at the previous cross of the weekly Stoch-RSI at this level, we can see that the price had a drop of 40% within 6 weeks time, this could become a possible scenario in the near future as the $2500 level has shown to be a significant support/resistance from previous encounters. If you are currently in Bitcoin, I would suggest retaining a portion of your holdings, but discontinue any further purchasing unless a break above the $4200 region occurs and with very strong volume.
Levels to watch (Coming Weeks):
$3150 - Previous Bottom, but risky zone to rely on
$2500 - 40% Drop Region, previously a strong support/resistance zone
$1250 to 1750 - Unlikely scenario, but possible if strong selloff occurs
Notes:
My current strategy would be to wait for confirmation in the following weeks. If the price does move according to the analysis, I would buy in 50% around the $2500 region for a bounce, and then watch for any significant movements before purchasing/selling any further.
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