Is Bitcoin poised for a pullback? Let's dive into the technical analysis to find out.
The Bearish Divergence
The chart shows a classic bearish divergence pattern. This occurs when the price makes higher highs, but the momentum indicator (RSI in this case) makes lower highs. This divergence often signals a potential price correction.
The Third Wave
Bitcoin has completed its third upward wave, which is a common pattern in Elliott Wave theory. After such a strong uptrend, a correction is usually expected to consolidate gains and set the stage for the next leg up.
What to Expect?
Based on the technical analysis, a price correction to the $83,000 level seems likely. This would provide a healthy pullback and allow the market to absorb recent gains.
Remember, corrections are a natural part of any market cycle. They offer buying opportunities for those who are patient and disciplined.
Stay Tuned for More Insights!
We'll continue to monitor Bitcoin's price action and provide you with up-to-date analysis.
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