BTC Price Outlook(11/2/2023) - Retracement Begins now?

Greetings! In this article, I will go over my technical analysis I did today and explain what indicators were notable and future potential scenarios of the BTC price action.

Retracement Begins now?

A few days ago, Bitcoin managed to touch the 36k level of resistance. This immediately led to a slight dumpage to 34.7k. While this may not seem like much, technical indicators on the 4hr, 24hr, and weekly time frames indicate that a strong retracement is soon to begin.

4-hour time frame:

In the 4-hour time frame, the RSI recovered within neutral territories. The MACD, however, confirmed a bearish cross, which means that within the next few days, Bitcoin is likely to retrace down towards the 33.4k price levels. Additionally, the 20 EMA is beginning to curve lower towards the 50 EMA, which indicates the end of a bullish upside and the start of a retracement.

24-hour time frame:

In the 24-hour time frame, the RSI is still very overbought (Still at 76) despite the recent downside. The MACD is even more bearish, with it at this point nearly confirming a bearish cross. This means that within the next week or so, Bitcoin is going to experience retracement towards lower levels in order to cool off previously overbought indicators. However, Bitcoin now has a decent support structure, with the 20 EMA over the 50 EMA and with the 31k resistance flipped support. This means that the retracement minimum levels will either be 30k, 31k, or 32k (The 20 EMA). 

Weekly time frame:

In the weekly time frame, the RSI is beginning to curve lower, however, it is still touching the overbought territories. The MACD is still printing green bars, however, they are still very small. This means that the MACD is still primarily very neutral and the RSI is preparing for a correction from the overbought territories. Furthermore, the current weekly candle shows a .382 candle, which can be seen as a loss in bullish momentum (Which is proven with the RSI on all the time frames below).

Conclusion:

In conclusion, Bitcoin touching the 36k resistance signifies a significant retracement because of the current heavily overbought RSI and MACD and the strong resistance at the 36k level. This retracement can go down towards the 32k regions or the 30k regions before re-rallying to higher price targets.

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