Just like the Chiefs' Kadarius Toney getting called for lining up offsides, invalidating a late touchdown, Bitcoin was hit with selling pressure that erased the spike. This failure to move towards highs could prove pivotal, robbing Bitcoin's price momentum. Bitcoin's "offsides moment" is just like a football penalty. It’s still early!
Across various market cycles, Bitcoin has consistently tested the golden pocket of the Fibonacci retracement once before retracing and subsequently experiencing a resilient bounce. Notably, this historical recurrence aligns with the appearance of the Ichimoku Cloud level within the same zone as the golden pocket. The coexistence of these critical levels suggests a confluence of this zone. This historical pattern underscores the significance of the golden pocket & the Ichimuku cloud as a critical level for Bitcoin's price action. They have proven to be a pivotal juncture in the past, acting as a key level before the commencement of a new cycle.
Zooming in, Bitcoin has posted 8 straight green weekly candles. However, the key to sustaining this upward momentum lies in the impending week's closing performance. For the current uptrend to persist, it becomes imperative that this week concludes with a higher close than the preceding week.
On the daily chart, Bitcoin is showing a bearish divergence on the Relative Strength Index (RSI), indicating a potential shift in market momentum. This serves as an early warning for a possible slowdown in the current upward trend or a potential reversal. Traders should keep a close eye on this development, as it could influence short-term market dynamics.
Bitcoin Market Cap
Disclaimer: The information provided in this newsletter is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy, sell, or hold any financial instruments.