BTC/USD Daily Chart (Binance) – Source: TradingView
Our signals system picked up a “decisional” candle on January 20 that confirmed a solid breakout of this pattern.
This system combines trading volumes, trend direction, and candle patterns to identify key movements. When buy or sell signals pop up as the price loses key levels, the probability of a positive outcome increases dramatically.
As we highlighted in a previous Bitcoin price prediction written a few days ago, our baseline scenario is that BTC will drop to $74,000 after this sell signal. For that move to be confirmed, the price must lose the $84,000 support.
That said, the Relative Strength Index is already supporting a bearish outlook as the oscillator dropped below the 14-day moving average, indicating a trend reversal.
As we head to the weekend, when trading volumes tend to dry up, sellers have the upper hand to push the price below $84K to squeeze out any remaining Bitcoin bulls.
Bullish Divergence Confirms Ongoing Consolidation Between $87K and $90K
Heading to the 4-hour chart, we got two consecutive “sell” signals since last Sunday that yielded positive results. The price seems to be consolidating between $87,000 and $90,000 as the RSI hit oversold in this lower time frame.