BTC recovery looks imminent now.

Recovery is imminent now. The reason for this is the RSI graph that you see at the bottom of the image. RSI is in a downtrend since early January this year. So, that is a very good indicator. A good indicator is something which has been holding for a very long time, in this case, 6 months. But now, it is more probable to break that upper resistance line than ever. So the thing with trendlines is that every time the graph hits a trendline, it either makes a higher high(in the case of a lower support trendline) or a lower low(in the case of an upper resistance trendline). And the chances of breaking that trendline increases when it retraces back to that trendline without making a higher high or a lower low. Here, in this case, we can see that RSI had already made the bottom(around 20 during mid-May. So, for the downtrend to hold, it needs to go below 20 which is very unlikely. And it has currently acquired an upward momentum in the last 2 days and the next time it goes near that upper line, it is very likely to break.

So, I believe 30k is the bottom for now. But if in the very rare case, if it goes below 28-29k, it might go to 20k( looks like that from H&S), and that might also mean daily RSI trying to make a lower low.

NFA. Goodluck.

Note

Daily RSI has just broken out of the 7-month long downtrend today. That's a good bullish sign. But we need a few more green daily candles for confirmation. Also, weekly candle made a hammer last week. That's also another bullish signal. So I believe that next time the price tests the 40k-43k region, there is a better chance of breaking out than earlier.

trader5319

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