DivXMaN2022-06-08

Is Bitcoin about to have a major breakout?

There are two things happening at the same time that indicate to me a major BTC breakout is imminent. #1 - Bitcoin price action has been in a bear market in all of 2022 and consolidating since early May. Over the last 24 hours we've seemingly flipped the top of this trend into support at the critical apex. We've also seen support form at the 45 level of the RSI along with the RSI and it's MA converging. This adds credence to the fact that the price is becoming constricted enough for even small amounts of demand to cause a rapid price appreciation. TA tells us a bounce here is very likely. #2 - At the same time we are seeing BTC exchange reserves hit new 4 year lows. This tells us that market sentiment has not changed. Nobody is rushing to sell their Bitcoin, in fact as prices stay low more Bitcoin is being purchased and removed from exchanges. This means the supply shock is increasing rapidly. Take this with a grain of salt is Bitcoin has been incredibly unpredictable lately.