Data:
RSI - 77.4
Stochastic RSI > 80 level, trending up
Price ~ 37% above 20 weekly SMA
Key support level: 11600$
Fear&Greed: 88
HeatMap Risk level: 68%
Interpretation:
Bitcoin has been incredibly bullish this week aiming to close weekly candle above 15K level. Data suggests Bitcoin is overbought in the near term: RSI at around 80 level historically hasn't been sustainable level together with overly bullish sentiment on Fear&Greed Index. Despite high RSI value, Stochastic RSI is still trending up, indicating upward pressure (it can always change on a dime). Bitcoin price is 37% above 20 weekly moving average - historically being support during a bull market, always dragging Bitcoin down to it's fair value at some point. In the longterm Bitcoin remains bullish as far as it holds 20 weekly MA, currently corresponding with our established key support level.
Considering mentioned factors we assume risk of holding position on Bitcoin is too high at current moment and we want to DCA sell part of our position with intention to rebuy at lower risk. According to HeatMap Risk strategy it should be 68% of our position.
III ALL ABOVE IS NOT A FINANCIAL ADVICE III
RSI - 77.4
Stochastic RSI > 80 level, trending up
Price ~ 37% above 20 weekly SMA
Key support level: 11600$
Fear&Greed: 88
HeatMap Risk level: 68%
Interpretation:
Bitcoin has been incredibly bullish this week aiming to close weekly candle above 15K level. Data suggests Bitcoin is overbought in the near term: RSI at around 80 level historically hasn't been sustainable level together with overly bullish sentiment on Fear&Greed Index. Despite high RSI value, Stochastic RSI is still trending up, indicating upward pressure (it can always change on a dime). Bitcoin price is 37% above 20 weekly moving average - historically being support during a bull market, always dragging Bitcoin down to it's fair value at some point. In the longterm Bitcoin remains bullish as far as it holds 20 weekly MA, currently corresponding with our established key support level.
Considering mentioned factors we assume risk of holding position on Bitcoin is too high at current moment and we want to DCA sell part of our position with intention to rebuy at lower risk. According to HeatMap Risk strategy it should be 68% of our position.
III ALL ABOVE IS NOT A FINANCIAL ADVICE III