The Stochastic RSI is a very powerful indicator of momentum in the market, and on the daily Bítcoin chart it is clearly showing that the bulls have likely run out of momentum. This is backed up by the low volumes the bulls are offering as they struggle to pass the strong $7120 historical resistance level , plus a Relative Strength Index which had been rapidly approaching oversold territory.
The Stoch RSI (like all indicators) is an indicator of what has happened and not what will happen... although as is the nature of technical analysis , we can look to history and infer what is most likely. Like a ball thrown up in the air (buying), it will eventually lose momentum, slowing to a temporary halt (think Doji candle), before coming back down (selling)... and so the cycle continues. You just need to recognise when this is happening.
When the Stochastic RSI crosses down over the 80 line after a strong bullish period, it usually always confirms a period of substantial selling is underway.
Following the most recent examples of the Stoch RSI crossing bearishly below 80:
In early July we dropped from $6820 to $6072 (an 11% drop)
In late July we dropped from $8497 to $5880 (a 31% drop)
If (and it's a big if) we cross down below 80 in the next few days... we could easily see BTC -2.07% drop from our recent high of $7125 back to our recent low of $6140 (a 14% drop). On the plus side, this presents a fantastic buying opportunity for all in Bítcoin, but especially in altcoins such as Ethereum -3.86% , Ripple XRP, Cardano, Stellar 0.00% and Litecoin.
For these reasons, I highly recommend you keep an eye on the Stochastic RSI .
Ultimately I see $100,000 as a very conservative estimate for Bitcoin -2.07% in just the next two years, with $250,000 far more likely. We just need to hit the true bottom (likely in the $5000 area) before we can get there.
Please give me a thumbs up and follow me if you found my analysis interesting.
This is for educational purposes only and not a recommendation to buy or sell.
The Stoch RSI (like all indicators) is an indicator of what has happened and not what will happen... although as is the nature of technical analysis , we can look to history and infer what is most likely. Like a ball thrown up in the air (buying), it will eventually lose momentum, slowing to a temporary halt (think Doji candle), before coming back down (selling)... and so the cycle continues. You just need to recognise when this is happening.
When the Stochastic RSI crosses down over the 80 line after a strong bullish period, it usually always confirms a period of substantial selling is underway.
Following the most recent examples of the Stoch RSI crossing bearishly below 80:
In early July we dropped from $6820 to $6072 (an 11% drop)
In late July we dropped from $8497 to $5880 (a 31% drop)
If (and it's a big if) we cross down below 80 in the next few days... we could easily see BTC -2.07% drop from our recent high of $7125 back to our recent low of $6140 (a 14% drop). On the plus side, this presents a fantastic buying opportunity for all in Bítcoin, but especially in altcoins such as Ethereum -3.86% , Ripple XRP, Cardano, Stellar 0.00% and Litecoin.
For these reasons, I highly recommend you keep an eye on the Stochastic RSI .
Ultimately I see $100,000 as a very conservative estimate for Bitcoin -2.07% in just the next two years, with $250,000 far more likely. We just need to hit the true bottom (likely in the $5000 area) before we can get there.
Please give me a thumbs up and follow me if you found my analysis interesting.
This is for educational purposes only and not a recommendation to buy or sell.
交易結束：目標達成:
This worked out exactly as predicted - will keep a close eye out for the next occurrence.