Let’s take a look at one of the KEY levels on $BTC… 👀
Taking a look at the daily chart, I’ve got two light blue lines representing when we saw the two most recent bearish divergence flips on the RSI. The first one from January 18th at 94.5k (which was never regained) before we lost that rising channel, and the other around 71.4k–72.4k (where we are currently retesting) in our current rising channel formation.
The reason I bring these levels up is to show at WHAT PRICE we saw the RSI flip bearish, which in theory is also the level that the RSI would flip BULLISH if regained. We already saw the RSI retest its trendline at the same time price retested 71.4k, but have since seen a rejection.
This shows how crucial the 71.4k–72.4k level is if the bears want to keep control of momentum. If that level is flipped via a daily candle close, then the bulls will take back control. So, to put it into very simple terms, if we break above 72.4k, we will likely see continuations back to the top of the rising channel, and if we see rejections at 71.4k–72.4k, we will likely see price continue to consolidate near the bottom of the rising channel before breaking down.
Hopefully, this is easy to understand just how crucial these levels are in the short term, but long term, we are not expecting any major moves until we either break out (which is very likely) or break down (which is very unlikely) from the rising channel. Keep a close eye on this chart…
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