Prepare for a potential downward correction in Bitcoin! After a strong rally since mid-January, BTC is showing signs of exhaustion and may be headed for a retracement. This idea outlines a bearish trade opportunity based on technical analysis and market factors.
Key Factors:
Overbought conditions: Price has been pushing against key resistance levels, reaching oversold territory on RSI and other momentum indicators.
Bearish divergence: Price action is making higher highs, but the RSI is forming lower highs, hinting at weakening buying pressure.
Potential headwinds: Upcoming macroeconomic events and regulatory news could spark risk aversion and drive investors out of crypto.
Key Factors:
Overbought conditions: Price has been pushing against key resistance levels, reaching oversold territory on RSI and other momentum indicators.
Bearish divergence: Price action is making higher highs, but the RSI is forming lower highs, hinting at weakening buying pressure.
Potential headwinds: Upcoming macroeconomic events and regulatory news could spark risk aversion and drive investors out of crypto.