We're a bit less than 9 hours away from the next candle close (UTC) and 1 D RSI Convergence has signaled from the previous low of ~$6900 on Feb. 6 to 54 days later, but we may not get confirmation for possibly 2 candles before a big momentum reversal.
Clearly, at $6500, momentum and volume have been weak, which suggests we could see an eventual and stronger breakdown here before we see a stronger momentum reversal. Compare for example to Mar 29 9:55 PM (UTC) where we saw a very strong momentum reversal at the dip with 5 min RSI Convergence. Here at about $6450 we've also seen 5 min RSI Convergence but very weak momentum with price barely touching $6550 off a low of $6457, for only a 1.44% bounce. It's fair to say the market is waiting this time around for more confirmation after the previous strong dip to confirm a bottom. In general, the stronger the dip, the stronger the reversal, and so far, we've seen a fairly gradual move from yesterday's high of around $7200 to $6500, just less than a 10% change.
It's notable that the peak at $7200 was also indicated by 5 min RSI Divergence and saw three touches off the same resistance before reversing to the lower line of the pennant/triangle pattern. Here, a good short opportunity could have been taken with a target of the next level signaling 5 min RSI Convergence given the knowledge of a likely pattern breakdown and repeated failure to break resistance with RSI Divergence signaled. Taking 50% profit at ~6700 would have generated nearly 7% profits. Then a secondary target (if you were willing to hold this position through the middle of the night, i.e. super RISKY) could have been in the $6400-$6500 range. Since 5 min RSI Divergence was signaled just below $6500 we could have taken another 25% (or even 50%) profit here, which would be a 9.7% move from $7200. Given the likelihood of a strong bounce coming soon it seems wise to close out the position here. Order book sell pressure seems to confirm that the risk:reward at this stage becomes fairly low for a continued short given the signaling for 1 D RSI Convergence.
An additional pattern that is appearing is a wedge that would require a breakout above about $7200 which was previously strong resistance. This combined with 1 D RSI Convergence momentum could result in a big move from the $5800 to $6500 range depending on candle closes in the next day or two.