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ET_Crypto 2 minutes reading from Bitcoin

Bitcoin Price Rally Was Just a Big Boost

BTC just went on a massive pump over the past week.

Everyone is bullish

Emotions are running high and FOMO has re-energized the market.

BUT...... this is where people get wrecked.

A thread ๐Ÿงต๐Ÿ‘‡๐Ÿผ

For transparency, I'm a long-term bull on crypto and Bitcoin but in the immediate short-term I'm seeing red flags that concern me.

TO THE CHARTS!!

This past week, we have seen a 21.95% pump from Bitcoin so far.

Sounds great right?

I say so too, however if we look at weekly volume it could paint a different picture.

yes it is a spike relative to recent weeks but nowhere near what you would expect from a true "rally".

Looking on the daily chart, we see our momentum wave on the bottom beginning to round out, showing that this pump is running out of gas.

On top of that, we can see potentially a spinning top forming (red candle).

This typically indicates a top signal or trend reversal

Finally, the 1-hour shows Bearish RSI Divergence.

Price support continues upward while the strength support levels go down

Conclusion:

What a great rally it's been, much needed in order to breath in life to the markets and give some hope.

If it was me, I'd lock in profits to be safe but to each is their own.

We're massively overextended and due for a pull back, which is healthy for all markets.

Will we dump?

Great question and nobody knows but what I do know is that things that soar can't do it forever.

Stay bullish, but cautious and Happy Trading out there!!!

If you got this far please feel free to like, retweet and share this with someone.

No advice, just for fun!

This post is based on this twitter thread.

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