As I’ve been talking about for over a week now, $BTC had rallied into a strong level of resistance at $65k, where we struggled to see buyers facilitate a strong breakthrough.
This led to a very bearish divergence print on the RSI a few days ago, which I made a post about. I mentioned how buying momentum had slowed down heavily and the bears were beginning to take control of momentum, which would likely result in a short term rejection.
Now, as we can see, that short term rejection has played out exactly as I expected. Although price is attempting to bounce here at $64k, which is a decent support level on the VRVP, I still expect price to come down and retest the strong horizontal support level sitting around $62.5k.
Keep a very close eye on price action as we head into the second half of August. The second half of the month has historically been very weak throughout bear market years.
I wouldn’t be surprised if this strong short term dump is the beginning of that August seasonality weakness.
