Bearish Logscale Butterfly T2 with Bearish MACD & RSI Divergence
Bitcoin appears to be set up at the 1.902 HOP for a Type 2 retest of the Logscale Bearish Butterfly that resulted in a major Type 1 reaction from the 1.618 Fibonacci Extension back in 2021, where it dropped from $69,000 to $15,500 over the course of several months before ultimately bottoming at the PCZ of a smaller Log Scale Bullish Butterfly which signaled the Type 2 run up to the 1.902 HOP of the Bearish Butterfly where it is now. As it tests this level the MACD and RSI are both Diverging Bearishly and the RSI especially seems weak as it now struggles to even crack above 70 level. This signals to me that the RSI has confirmed exhaustion after divergence at the HOP and that it is likely ready to start declining further.
Saying as though this is the type 2 test, I'd suspect that we'd make a lower low than our previous Type 1 reaction low at 15k, perhaps landing us around $12-10k; but if those levels don't hold It would be technically viable to assume BTC would go for the 0.886 retrace at around 4.6k
Saying as though this is the type 2 test, I'd suspect that we'd make a lower low than our previous Type 1 reaction low at 15k, perhaps landing us around $12-10k; but if those levels don't hold It would be technically viable to assume BTC would go for the 0.886 retrace at around 4.6k
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.