Eralp Buyukaslan
๐จBased on these indicators, could BTC be preparing for a correction from the 35K-36K range down to 32K?
Even though the HYPE in the market may make us believe that this upward movement will continue without slowing down, we shouldn't forget that the Resistance Line we are in (35K-36K) contains both Technical and Fundamental risks. 1.RSI Indicator: This indicator has climbed up to 87 levels on the daily chart, and this means risk. 2.FIB 0.382 level: Based on the Fibonacci Retracement drawn by taking the November 2021 peak and November 2022 through as a basis, the 0.382 level corresponds to the 35863 USD level. Generally considered a significant indicator for trend breaks, this level is regarded as a major resistance unless its broken. 3.Funding Rates have been positive for days: On exchanges where retail investors are active, we see that investors have been taking substantial long positions for days. While this situation may indicate increased optimism among investors, it also implies a short-term correction risk. We know that whenever the Funding Cost turned this positive in 2023, corrections followed within the next 4 to 5 days. 4. Exchange Net Flow chart: Looking at this chart, we see that the amount of BTC entering the exchanges is more than what's leaving. Based on this indicator, I believe we are not in a risky area yet, but if this trend continues in this manner, we might consider it an on-chain risk. Considering these indicators, it would be more reasonable to anticipate a small correction to the 32K range rather than a deep correction that would completely reverse the trend.