Today Bitcoin tried to escape the rising wedge that has been forming the last couple of weeks. It got hugely rejected and will probably close the day within the wedge. When checking the weekly timeframe the RSI reached 90 today. Only 2 times in the past the weekly RSI got this high on the weekly timeframe. The result was that Bitcoin started to correct the following week.
I think there won't be a new paradigm. So Bitcoin going down bigtime next week.
During the last bull run 4 years ago, corrections were approximately between 30% and 40%.
Today's peak was at 28.4k on Binance
28.4 x 0.7 = 19.88
28.4 x 0.6 = 17.04
The 19.88K and the 17.04K are both interesting levels to watch since they are both past peak values in the past bull run, so resistance becomes support.
Also something interesting to take note of, during the last bull run 4 years ago, corrections never went beneath the 200D EMA.
The similar looking final run of the 2017 bull market had a correction of 43.36%.
28.4 x 0.5664 = 16.09
Taking both in account, maybe the absolute lowest possible value of the correction will be around 16.09K and stay above 200D EMA
Check also this guy's graph with some interesting numbers of previous corrections:
I think there won't be a new paradigm. So Bitcoin going down bigtime next week.
During the last bull run 4 years ago, corrections were approximately between 30% and 40%.
Today's peak was at 28.4k on Binance
28.4 x 0.7 = 19.88
28.4 x 0.6 = 17.04
The 19.88K and the 17.04K are both interesting levels to watch since they are both past peak values in the past bull run, so resistance becomes support.
Also something interesting to take note of, during the last bull run 4 years ago, corrections never went beneath the 200D EMA.
The similar looking final run of the 2017 bull market had a correction of 43.36%.
28.4 x 0.5664 = 16.09
Taking both in account, maybe the absolute lowest possible value of the correction will be around 16.09K and stay above 200D EMA
Check also this guy's graph with some interesting numbers of previous corrections:
