Beware the short term rally! Once again BTC has had a nice little rally over the last few days and everyone is getting excited about BTC going to $100K in December, or $135K, $260K or whatever.....and I'm sure we'll see those numbers in time. But hold your horses. We are still current;y in a short term downtrend on the daily chart. Yes, we have had a nice rally but it is weak. I've highlighted some important points on the chart (red circles):
ADX - still very much in the red
RSI - declining
On Balance Volume - negative
These are not the traits of a bullish upswing. Price has rallied up to $60K but failed to break this important level and so there is a good chance we could see a further move down to the $54K level. I'll be placing some buy orders down at this level just in case we see a flash crash down to this stronger area of support.
ADX - still very much in the red
RSI - declining
On Balance Volume - negative
These are not the traits of a bullish upswing. Price has rallied up to $60K but failed to break this important level and so there is a good chance we could see a further move down to the $54K level. I'll be placing some buy orders down at this level just in case we see a flash crash down to this stronger area of support.
