Bitcoin Price: The Correction Has Commenced

The last article stated:

“The bull trend continues to look very strong. 13 of the last 15 days have been green […]. The indicators all remain overbought and extremely elevated. A blowoff top seems to be forming but that can take the price much higher than here. As noted, when the indicators start to diverge from price, it could be a top forming for now that has not happened. As the chart below shows all the indicators are at yearly highs. Price has also moved out of the top of the Bollinger Bands, which shows it’s moving into an extreme position.”

The blowoff top did occur as price reached a high of ~US$500, before running into what is an area of major overhead supply.  All of the indicators were flashing signs of extreme overbought conditions and while they have come off a bit as the price has declined they are still elevated even following the price decline of the last few days.

The RSI has formed a double top and is now correcting. The MACD is starting to roll over as well but is still extreme. The DMI remains extreme but buying pressure is subsiding, which

Read more ... source: TheBitcoinNews