BTC analysis – the strength of the trend is declining, is a corrective leg waiting for us?
2 min readToday, as every day, we analyze the BTC graph. The trend in which the price of BTC is begins to weaken and the last maximum of $ 50,500 is not that far from that previous maximum of $ 48,200. Volumes are also falling sharply. It is therefore appropriate to ask whether the price will not fall out of the bear flag, which has been current for more than a month.
if BTC after reaching the last maximum, it will go to the support limit of the flag, which is roughly at $ 47,000, then it is likely that this support will not be maintained. Subsequently, we would look for a new support, which is located at $ 44,000. The key support, below which the price must not fall, is the level $ 41,000. This support separates the border of the accumulation zone and the growing trend.
Read also – BTC analysis – the price exceeds $ 50,000, but the volumes are falling
The BTC trend is weakening
On the other hand, we must also monitor volumes. These are currently declining, which suggests the first scenario. If, however, sentiment turned and volumes would increase hand in hand with rising prices, so then it is possible that the price would still reach the target at the level $ 53,500. It is also necessary to monitor the level $ 50,500. With the growth, the price may stop at this level as well, thus creating a double peak.
RSI it still respects the overbought limit of 70 points and also, like the volume, indicates a negative divergence. Officially then growth did not end and the trend continues, but the correction is approaching and the data clearly show a weakening of the current trend.
