Bitcoin | The Monthly Chart Gives It Away!Here we have the monthly chart for Bitcoin, we will see why some additional correction is yet to take place.
We are going to start with our classic EMA analysis, and it goes like this...
We have a peak in April 2021.
This monthly candle closed as a Doji, signaling indecision and the correction that took place next.
The correction after April's peak price in 2021 found support at EMA10.
The bounce from EMA10 didn't lead to a new high, technically.
We have a new high in November 2021 vs April, $69,000 vs $64829, but this is technically the same high.
Since the bounce off EMA10 as support did not result in a new high, the next support level to be tested on a drop is EMA50 or the next major EMA.
EMA50 is sitting at $23,750.
This is it for the EMAs.
The trading volume is super, super low.
This is never a good signal at this point.
Lowering volume can presage a drop.
The MACD has already crossed bearish, with the histogram going red and plenty of room to drop:
On the RSI, we now have the classic multiple years long bearish divergence starting in 2017:
Notice lower highs short and long-term.
The RSI has also gone below the rising trendline support.
Since it is still above 50, there is plenty of room/space available for additional drop.
We will share an updated trade idea once the monthly candle closes.
Brace yourself.
Be patient.
Plan ahead.
Buy & hold.
Many new opportunities will be developing in the days and weeks to come.
Namaste.
