Thoughts On BTC And My Short Term Plan

The market has lost some steam in the past few days. There are some people believing that this was it, but of course, they will flip bullish as fast as they flipped bearish. In bull markets, we must expect some pullbacks, even more significant corrections of up to 50%. I believe we are at a point where we are seeing a retracement because profits must be taken, people must be trapped, and the bulls must regain steam to push prices higher. Let's discuss some things that made me start believing that we had to retrace.

In this chart, you can see that 10 days ago, we had an extremely overbought daily RSI that was trying to correct, but the buying pressure wouldn't let it. At the same time, we were experiencing lower and lower volume with higher prices. If you look closely, you will also notice that on March 5th, there was a significant dump with an insane amount of volume. The price bounced, of course, and the rally continued the next day. However, if you observe the volume after that, it wasn't as significant, which was the first sign.

Next, in every timeframe, BTC was overbought - in the 3D, in the weekly chart, and everywhere else. The sentiment was full-on greed, reaching almost 90, and the all-time high was broken by a considerable margin.

So, I believe that a retracement and consolidation are what will happen. Let's delve into what I am thinking about at the moment.

What worries me now is that we visited that support in two days' time. That means there isn't enough power right now to push upwards because if there were, after hitting it once, it shouldn't give the opportunity to revisit it again.

I am pretty sure that we are now in a range. I believe we will get rejected around 66,000 and then revisit 61,000 again before breaking to the downside. My main target to see in a week is around 52,000-53,000. I have placed an order there in case that happens.

Overall, the market is bullish, but these corrections are needed if we want to have an extended bull market rather than a short one where only a few can make money.

Posted Using InLeo Alpha