Bitcoin is correcting after a week of strong growth
Bitcoin is losing 5% in the last 24 hours and is correcting strongly. But this is still worth considering in comparison with the significant increase observed last week.
BTC fails at $25,000
BTC could not overcome the symbolic mark of $25,000. In contrast, BTC is currently experiencing a pullback and is now trading around $ 22,600.
This recent drop came after the appearance of a double standard bearish divergence on the RSI, as well as an upward wedge breakout. So this fix makes sense, and the BTC has already reached the target indicated on the graph.
However, it is true that the short-term situation remains very uncertain. If the situation on H4 remains fairly neutral with the possibility of a rebound from the lower limit of the consolidation range between $22 and $24,000, H1 will remain strongly bearish. Therefore, the scenario of a larger correction is still very likely.
Correction still in bullish context
Please note that this is only a correction, not a bearish reversal. This is due to the situation in other units of time, especially on a daily scale.
It is important to note that the trend is still very bullish. Since the 20K breakout less than a week ago, the crypto asset has soared almost 25%.
It’s normal to see the price adjust in this way, and it shouldn’t call into question the underlying trend, which remains bullish.
After all, in everyday life, everything is always green. There is no bearish divergence on the momentum indicators, the price is holding above the Tenkan and also does not show a bearish pattern.
Therefore, we should give preference to a simple temporary correction before Bouncing back to new highs. The preferred target ends up being very close to Bitcoin’s current value, mixing Tenkan and a 38.2% pullback while still contributing to the rebound.
If ever this support gives way, a return to the key $20,000 level is still possible.
While the analysis should focus on small units of time, it is also interesting to look at the situation on a weekly basis.
There is no doubt that the trend remains strongly bullish and is supported by a breakout of the marginal resistance at $20,000.
However, it is also interesting to look at the RSI in this scale. Currently, the RSI is very close to the historically high levels reached during the bullish forecast of 2017.
This materializes a sharp rise, almost excessive. If at the moment the daily indicator remains bullish, it is necessary to keep in mind that the growth will not be eternal.
A deviation during this or next week will be highly likely, given the state of the indicator. If other bearish elements are added to the Daily, we will have to be very careful with a correction that may be much stronger than currently known, and which can easily return the BTC to $19,500.
Bitcoin is falling to recover soon. Daily analysis suggests that after this correction, a new bullish momentum should appear, which remains minimal compared to the growth observed last week.
However, you will have to remain cautious if BTC finds new highs, and watch out for bearish signs such as bearish divergence. The weekly analysis reminds us that the growth is extreme, and that a big correction of this scale is due soon.