There’s something about the charts that’s been bugging me lately—definitely leaning toward a bearish bias.
As much as I want to be bullish and for Alt Season to kick off, my focus on Bitcoin is mainly to gauge the pulse of the Altcoin market. But there’s something on the weekly charts that’s hard to ignore.
The Stochastic RSI has turned bearish, signaling a downward bias for Bitcoin’s immediate direction. This could play out as an overall correction that might take another week to play out.
Adding to this, back in November, Bitcoin’s price rejected off the 0.618 Fibonacci level on Bitcoin Dominance. This level marked the peak for Bitcoin dominance in the 2021 bull run. At that time, the stochastic RSI was overbought with a bearish crossover and dominance rejected off the 0.618 Fib level, leading to a 31% correction over two weeks before the market quickly rebounded.
Fast forward to today, we’re at a very similar juncture. Stochastic RSI is overbought and we have rejected off bitcoin dominances 0.618 fib level – Will we see a 31% Correction?
Well! If we were to see a 31% correction from the previous ATH, it aligns almost perfectly with the 0.618 Fib level—hard not to see this as more than just a coincidence.
On top of that, I suspect we’re currently in a Wave 4 correction. However, a pullback to the 0.236 Fib level feels almost too straightforward to me—perhaps too easy.
What do you think? Would love to hear your thoughts!