The Short
Bitcoin daily RSI is showing overbought. Given the key areas highlighted in the fib retracement below, We have two levels of support.
I’m expecting Bitcoin to test $43k or $41.5k again before taking off to test resistance again at ~$45.9k.
I wouldn’t be surprised to see something like this play out short term. Whether Bitcoin dips or immediately shoots up, I still believe the local bottom was tested on January 24.
With talks about banning Russian access to crypto exchanges, war escalating in Ukraine, and short sellers looking to take a quick profit, I think we’ll see a 2.5 to 5% dip based on sentiment.
Going Long
Long-term sentiments, however, remain on the upside. Understanding that most Bitcoin TA’s view price action from a 60/65 day cycle, I see the cycles stretching a little bit longer.
Overall Bitcoin sentiment is positive. Looking at what’s happened in Canada and Ukraine – seeing how easily authoritative power can seize cash – people are generally looking to crypto as an answer to many existential problems.
The “Bitcoin fixes this” mindset is slowly becoming mainstream. Will Bitcoin test highs and lows in the coming months? For sure – people will always react to news with their wallets and mass Bitcoin adoption will take time; but when it does happen, the value of this scarce resource will surely skyrocket given its limited supply.