7 Reasons Why #BTC Will Fall to $32k (Part 2)
In my previous post, I discussed two major reasons why BTC may eventually decline to $32k. Let's continue exploring additional factors.
3. Before each halving, BTC experiences a period of consolidation
To fully understand my upcoming points, it's important to be aware of this pattern.
Green Arrow : UpTrend
Red Arrow : DownTrend
Orange Arrow : A small UpTrend before each halving
Red Rectangle : 1 Month before halving
Take a look at my weekly Bitcoin charts on TradingView, powered by BitStamp Exchange. In each cycle, we observe a small uptrend (orange arrow) before the halving event. Following this pre-halving period, BTC enters an uptrend, reaching a new high higher than the previous cycle. This pattern follows a sequence of: uptrend before halving, halving, uptrend with a new peak, downtrend, and then a subsequent uptrend.
While we cannot predict whether the first higher high will surpass the next one, the key takeaway is that you will have an opportunity to take profits from your crypto holdings.
In this current cycle, BTC has already experienced the small uptrend preceding the halving. We are now likely to face a downtrend, which I anticipate will occur in April. After this period, the bull run is expected to resume. I hope you will be able to profit from this market movement.
4. RSI indicates BTC is overbought
The Relative Strength Index (RSI) is a technical indicator that measures market strength. I typically configure it with 80 for the overbought zone and 20 for the oversold zone. Analyzing the RSI reveals that BTC is currently overbought and may experience a sell-off in the future. However, it's important to note that this is not always the case.
BTC can remain overbought and continue to rise. Technical analysis is based on probabilities, so while a price drop in BTC is more likely, the opposite outcome is also possible. Please exercise caution.
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