Relative Strenght Index (RSI) levels are too damn high to take a safe long position in Bitcoin right now (although there is still room for the price to go up to a RSI level around 95).
The RSI level on the montly chart is at an all time high. With blue vertical lines I indicated the lowest points of the price drops after relative high RSI levels. It shows we can expect a similar movement soon.
To get a better picture of how it could play out, we need to take a look at the daily chart, where I used arrows and horizontal blue lines to indicate 3 previous relatively strong downtrends after a peak in RSI level - and the reversal of those trends to uptrends. Notice how the blue vertical lines indicate the most important peaks of RSI - and what happens after them.
A major correction, likely going down to 7000 euro's (sorry, I am not working with dollars) or even to 6500 euro's will probably happen soon. The price will find strong supports at those levels and only when it breaks through 6500 euro's there will be a real mess. I am expecting the price to return to a bullish movement from those support levels though.
Often, the reversal from a downtrend to a uptrend is over before you know it. That's why you need buy limit orders to profit. Most preferably buy limit orders on different entry levels, to decrease chances you have set your limit too low (and will not get into the deal) and to decrease chances you have set your limit too high (and buying at a too steep price).
Buy the lows and sell the highs or hodl!
I totally share your opinion. Thank you for the post! :)
Thx for the views Leendert we don't know yet what is gonna happen. But for sure it will be intresseting.
And congrats on the views of thiis post.