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BTC analysis – growth continues, but its strength gradually weakens

2 min read

BTC created a local maximum at $ 57,850 and stagnated in the short term. Volumes are also losing strength and declining. The key will be to monitor whether the price manages to maintain MA21 and the trend will continue. The last growth was not so significant, and therefore it is possible that we are approaching the maximum, which will be followed by a correction structure.

BTC was not at the last rise supported by volumes nor did the price itself generate stronger growth than the previous one. We will now follow the MA21 support, which is $ 55,746 at the time of writing. Subsequently, the support is at the previous maximum of $ 53,000 and at $ 51,000, where the previous resistance from the maximum from ATH is located and can now serve as support.

BTC / USD 4H.  Source: TradingViewBTC / USD 4H. Source: TradingView

BTC continues to grow, but the maximum is approaching

In the short term, the RSI broke through the negative divergence and created a higher local maximum. According to RSI, it is still room for further growth. The target we’ve been tracking for the past 3 days is still $ 59,000. This value represents the previous maximum that occurred below the ATH. Subsequently, it is necessary to expect a correction structure, as we are already in the fifth wave of the trend.

If the price will rise slightly and the volumes with RSI will not increase much either, then it is a clear sign of a weakening trend. In that case, a correction can be expected, but it has not yet been confirmed and in the short term the price may still go into a growing trend.

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