At the moment, there are no realistic reasons to see the Bitcoin moving upwards on a medium term.
Analyzing the monthly chart, it is clear how there are more possibilities to see the king of cryptos tumbling down rather than going up. My view for the next upcoming months is then negative. Obviously, crypto market, as of any other financial market, needs to be monitored constantly, since new volumes can change the view at some point. However, at the present, it is required to be patient, thus avoiding to jump in, if not for those traders who are eager to speculate on a short- term timeframe.
As you can see, both RSI and a personalized stochastic are crossing below the overbought area, giving a clear BEARISH signal.
Based on my experience, most of traders do not know how to proper use RSI. The indicator should NEVER be used as a contrarian indicator if the crypto is moving in a trend. In fact, when the RSI crosses above the overbought area, the indicator gives a very BULLISH signal! It is only once it crosses below that we are aware that the bearish forces are back in control. RSI should be used as a contrarian indicator only and if the crypto is moving in a range!!! But as far as we know, cryptos are quite often moving in a trend.!
Regards,
Simone
Analyzing the monthly chart, it is clear how there are more possibilities to see the king of cryptos tumbling down rather than going up. My view for the next upcoming months is then negative. Obviously, crypto market, as of any other financial market, needs to be monitored constantly, since new volumes can change the view at some point. However, at the present, it is required to be patient, thus avoiding to jump in, if not for those traders who are eager to speculate on a short- term timeframe.
As you can see, both RSI and a personalized stochastic are crossing below the overbought area, giving a clear BEARISH signal.
Based on my experience, most of traders do not know how to proper use RSI. The indicator should NEVER be used as a contrarian indicator if the crypto is moving in a trend. In fact, when the RSI crosses above the overbought area, the indicator gives a very BULLISH signal! It is only once it crosses below that we are aware that the bearish forces are back in control. RSI should be used as a contrarian indicator only and if the crypto is moving in a range!!! But as far as we know, cryptos are quite often moving in a trend.!
Regards,
Simone