Why Bitcoin still keeps dumping from support areas ?As you can see, Price still follows the Inverse Head and Shoulder pattern and keep in mind guys, this is on the 4H timeframe and formation of the complete pattern might take a week to 2. In the meanwhile why has bitcoin dumped from $48500? One thing I could see is that in the Daily stochastic, we were still moving down and from the oscillators we didn't quite get a bullish Divergence yesterday. But right now Bitcoin has created a new Lower low than the previous Low and a bullish divergence in the RSI of the 4H timeframe as well as if the candle closes green Today for bitcoin in the Daily Timeframe it'd also signal a bullish buyers in 1D timeframe( you can cross check with just a normal RSI on both timeframes). The point is that Bitcoin might take price action to $43-$44k range as those areas have tons of support. But again those will lead to more bullish divergences! So, I'd say not to risk your money by going on high leverage until confirmation occurs, keep a tight stop loss.
We have a buying situation Today and can go long but then too always consider the other scenarios. So take profits in the necessary support areas and have a tight stop loss set
Yes the bounce was reasonable but having patience to wait for the confirmation would serve better!
