Bitcoin Analysis: Trend Reversal on the Horizon?
2024-09-20

Let’s dive into where Bitcoin’s been over the past week and what might be coming next. I’m going to show you two charts we’ve been tracking. 
  
📉Chart 1: Tracking the Trend Since March
Since March, Bitcoin has been in a steady downtrend, marked by lower highs and lower lows. However, about a week ago, we flagged a potential bottom after hitting a significant low on August 5th. The key question was whether we’d see a higher low after that, signaling the start of a trend reversal. On September 6th, we did, in fact, get that higher low, which is the first sign of a potential shift in direction. 

But for a true reversal, we need confirmation in the form of a higher high. As of now, we’re still waiting for that higher high, which I’ve highlighted on the chart (around $65,000). The Stochastic RSI is approaching overbought levels, so we may see a correction soon. Ideally, this would happen after hitting that higher high to confirm the reversal.
  
📈Chart 2: Sideways Action Throughout the Summer
The second chart shows the sideways action we’ve been experiencing, which has been the foundation of my summer trading strategy. I mentioned I’d stay bullish as long as Bitcoin remained above the orange box, and so far, it’s held up. 

If we do get that higher high and then a correction, I’ll be looking to go long on a dip back toward the red box. It’s all about sticking to the plan. Once again, the Stochastic RSI is overbought, so a correction is likely. However, I’m watching for enough upward momentum to give us that higher high before any pullback.

💡Final Thoughts
As always, Bitcoin’s movements tend to guide the rest of the market, so keeping a close eye on BTC’s price action is crucial for understanding the bigger picture. Stay prepared for both bullish and bearish outcomes, and have a plan ready for whichever direction we head next. 

Stay safe and trade smart!