The recent market crash made all RSI levels plummet, the daily RSI is below 30 points, currently at 22.37 points awaiting a bounce from the bulls. This isn’t guaranteed though as we have seen Bitcoin get overextended like this for a few weeks before seeing any kind of bounce.
The last time Bitcoin was this overextended was in November of 2018 right before the sideways trading began followed by the massive early-2019 bull run.
This pattern really looks similar to that with a triangle pattern breaking bearish. The last triangle pattern lasted for almost 1 year, this one only for about 3 months, basically 4 times faster. Would this also mean the sideways trading period is going to be 4 times faster?
If so, we could see Bitcoin trade sideways for about a month before taking off again with another huge bull run. It’s also important to note that the last time the triangle pattern broke bearish, Bitcoin had a small bounce followed by another pretty big leg down so we could see Bitcoin dropping below $8k and possibly touching $7k.
The 4-hour chart is showing a small uptrend for Bitcoin, however, the bulls are struggling to break above the 12-period EMA so we have to take this uptrend with a grain of salt.