The Inclination to Short the Market
Price of the bitcoin has shown us a huge gain since my previous analysis. Price has already broken out from the upper resistance trend line of the yellow triangle which I've anticipated previously and even spikes higher to the $19000 zone. Some say that the price will have another footprint toward the All Time High and some say that there will be a rejection. Now, let's do the technical analysis on the price action comparing with the MACD and RSI.
Since the price has passed the $11500 zone, it has gained for more than 73% in 39 days. This is however a very outstanding performance even for bitcoin itself. The fact that the price has already broken out from the 1.1 fibonacci extension level is making a wild opinion about the bullish perspective. However, it was a goo forward step for bitcoin.
From the RSI perspective, price has been trending between 60 and 80 level since the October, 16th which is the bullish range based on the Constance Brown's theory about RSI. We've seen several test from the RSI to breaks below the 60 level but once again it's a strong support level as the bullish always comes and drives the price higher after the bounce on this RSI. As long as the RSI trends right around this range, there will be more upside moves for the price action itself.
The MACD perspective, it looks like that the bulls are really strong at this zone as we know that at least there are 2 sideways crossover on its MA lines. Every time the MA lines looked for death cross, the bulls fight back and makes the MA printed a higher high structure, means the bulls are gaining strength at this level. On the Histogram, we've seen a similar level on the last 3rd cycle peak at the positive zone means that there hasn't been any sign of decreasing in strength even the bears try to push the price.
In conclusion, there are a lot of bullish signals after this break out of the 1.1 fibonacci extension range which no doubt can push the price to the higher region of between 1.272 and 1.382 fibonacci level. But, this possible upside action can be considered as the extended wave 5 which makes the future correction is still inevitable. I really recommend to watch closely for the short opportunity and don't get caught up with your emotions of FOMO ing.
Since the price has passed the $11500 zone, it has gained for more than 73% in 39 days. This is however a very outstanding performance even for bitcoin itself. The fact that the price has already broken out from the 1.1 fibonacci extension level is making a wild opinion about the bullish perspective. However, it was a goo forward step for bitcoin.
From the RSI perspective, price has been trending between 60 and 80 level since the October, 16th which is the bullish range based on the Constance Brown's theory about RSI. We've seen several test from the RSI to breaks below the 60 level but once again it's a strong support level as the bullish always comes and drives the price higher after the bounce on this RSI. As long as the RSI trends right around this range, there will be more upside moves for the price action itself.
The MACD perspective, it looks like that the bulls are really strong at this zone as we know that at least there are 2 sideways crossover on its MA lines. Every time the MA lines looked for death cross, the bulls fight back and makes the MA printed a higher high structure, means the bulls are gaining strength at this level. On the Histogram, we've seen a similar level on the last 3rd cycle peak at the positive zone means that there hasn't been any sign of decreasing in strength even the bears try to push the price.
In conclusion, there are a lot of bullish signals after this break out of the 1.1 fibonacci extension range which no doubt can push the price to the higher region of between 1.272 and 1.382 fibonacci level. But, this possible upside action can be considered as the extended wave 5 which makes the future correction is still inevitable. I really recommend to watch closely for the short opportunity and don't get caught up with your emotions of FOMO ing.
