''RSI overbought short time frame, divergence''
2 scenarios in mind.
Will try to knock on the resistance from temporarily support line 7900 level ish , but will not make it.
The trend will look for next support line, which will be 7500. Now there could be two different possibilities I think.
1) If 7500 holds strong, then it could bounce off from here potentially to 8.5K, even without need to touch the new formed support in blue.
2) If it doesn't hold, then it will drop off to the newly formed support , which will be around 7200 to 7300 by the time It reaches there.
Then I see making a triangle, then breaking it off by reaching 8.5k, then a little rest around that region, potentially reaching 9k eventually.
Obviously this is the big picture. There will be small knockings on resistance and support lines but I will overlook it.
Ok, then this is the actual detail. Whales like to dump and pump stuff because those stop-losss are so delicious to eat. When triggered, it will consistently be squeezed in a large up and down.
So look, first there would seem to be a small triangle formed around 7.9k with the resistance line. There will be some dumping from the whales, could be small or big one, depending on until where they wanna dump the shit. However at least to 7.5k. Its up to the buyers how they will catch up from here, but from here it will try to knock the resistance trend once more, if this works then boom to 8.5k/ if it doesn't then another dumping to the next support line around 7.2k from the big symmetrical triangle. Then this will narrow down to eventually 7.5k target once again as noted.
I personally try to understand the direction of trend as a ping-pong ball between <the support> and <resistance player>. when the velocity of it is strong enough to knock the resistance line but fails, the returning speed would be also as grande.
Thank you for your time and effort hahaha
And this could support my point. In reality it may not have anything to do with paying taxes. However, this could be disguised as a good reason for whales to dump by 17th.
And then probably they will publish like "selling due to paying taxes led to sharp drop in btc"
And then start the 2nd phase of accumulation.