Check out my latest Technical Analysis of Bitcoin. From my point of view, situation is more than complex. Let's have a look at the picture:
Here we can spot three key signals for Bitcoin price:
- Long term triangle pattern, which Bitcoin breakouts through the bottom. Clear sell signal.
- Medium term falling wedge patter. So we have a chance for reverse in trend. Bulls advantage.
- In short term we see RSI in oversold territory. Another signal for bulls.
So what's next?
For me we have clearly bearish market now. Just take a look at this enormous triangle. And huge volume spike during breaking out. It's clear - bears rock right now. But... as I wrote before - wedge may suggest bulls may have a chance. There is just one problem - so far wedge patterns didn't work well with bitcoin. There is risk it may fail again. On the other hand, RSI gives a strong support for bulls and theirs counter attack. If you look at the chart history, RSI was always a good predictor for Bitcoin. At least to spot correction.
I'm on bearish side of the market now. Current situation is just correction during downward trend and that's what I suppose is showing us RSI. In my opinion wedge will fail, triangle will prevail. RSI will cool down and Bitcoin will be falling again. It's not the end, but lets be hones - Bitcoin is facing more troubles than ever. Just take a look at latest news about possible huge price manipulation, with Tether involved:
Add to this FDA investigations and recent exchange hack and you see a lot of threats for Bitcoin. Threats that favours bears in Bitcoin race. Upcoming correction may be good time for shots or selling Bitcoin to wait and buy back at lower levels.
Just remember, always judge yourself and make your opinions. No one can predict future. We can only guess.