BTC - Ready for relief?

7 thg 3, 2023

BTC is developing bullish structure. Lots of shorts were taken upon Powell's decision which could cause a slight short squeeze in the market. We identify this possibility based on the 1H bullish divergence forming. Same/ lower low in price but a higher low on our RSI . We can also conclude this by our 1H doji reversal candle. As long as the lows hold then a reversal back upwards is likely. If we break the lows without a higher low on our RSI this theory is negated. A reversal to the upside would bring us first to the key 22.6k. If we break above we will go to our secondary resistance box which was our previous support that could be flipped into new resistance ($22.8-23.1k). If we get above that then price will move up to the bottom of our parallel channel ($23.6-23.9k depending on when price reaches there) which should act as old support flipped into new resistance.

In conclusion, price is likely to reverse based on 1H bullish structure (4h bullish divergence should confirm this). Mid term price will still go lower and looks more likely to test below 20k rather than 25k. Therefore any longs placed here should act as scalp trades with a tight stop loss.