Explosive move coming!
The day is looking victorious for the bulls as we have broken into the golden pocket, which represents that the bulls are fighting harder than the bears can "bare" no pun intended. However we are not out of the ball park yet as we are currently still within a bearish formation, BUT i shall present you with some bullish technicals in the lines that follow.
I have compiled a few points of confluence for you and hope it is of value to increasing your understanding on the medium term movements of BTC at this very time.
1) Bollinger bands (bull): After a multi day squeeze on the bands the deviation seems to have finally come to a decision. It may not look so by those of you who do not use the bands but in actual fact it can be seen that the support deviant is beginning to slightly move downwards where as the resistance deviant is consolidating which is a bullish signal. To explain this concept basically is, The band opposite to the potential price movement shifts away from where the price is going, therefore when the price moves up, the support deviant moves further away from the price and the resistance deviant moves closer to the price and visa versa. This is a technique i use as a confluence and it has proven to be a valuable asset within these situations where the Bollinger bands are squeezing. Tell me what you think about this idea and back test it if need be.
2) Moving average (Bear): I am currently using the 20 EMA which is an excellent short/medium term indicators and as the EMA amounts increase the time frame becomes bigger. The price is currently sitting right below the EMA which will act as a strong resistance for the price and will require a lot from the bulls in order to break through these level, as well as another level which i will discuss below that runs directly through the EMA which strengthens the resistance. This is a bearish signal of course.
3) Golden pocket (bull): Today was a good days solely based on the fact that we had a strong run that broke right into the pocket with ease which potentially means we are not being squeezed into decision on where to move as well as the fact that the squeeze was most likely to result in a bearish movement as the technicals where portraying it. Phycologically the price breaking into the pocket is a good sign and some are most likely watching the markets closely in order to see where the price will go when it breaks the pocket as it will have some strong backing with it. If for example we break to the bulls, it is still not a huge buy signal as we still have the Bollinger and pennant formation to break out of. So as i said dont jump the gun based on one indicator, wait for the stars to align.
4) bearish pennant (bear): No matter what anyone says, before we break out of the pennant we are not safe and based on the fact that it is a bearish formation it is not out of the discussion that we bounce off resistance and test or break the support and fall down to the target level of around 23k.
5) MACD (bull): After the MACD diverged bearish it hasn't made much progress and therefore has reversed and seems like a convergence is likely to appear rather sooner than later and my prediction is it will occur somewhere tomorrow or sometime this weekend. If not then price will at least consolidate on the convergence which is possible and has a likelihood of happening.
A reason apart from the technicals is the fact that it seems that the narrative is shifting away from the fear based and negative propaganda regarding BTC on to a move positive and hopeful scenario, which is expected as that is how the game works and institutions understand this metric as there are enough retail traders who are influenced by media to fluctuate the market based on the narrative set by the institutions. It doesn't take much to notice this system of manipulation and therefore I shall tell you to rather think like a institutional trader and sell when the market is looking unstoppable and buy when "crypto is dead" as it takes a few days to shift narratives.
If you have read up until this point i am truly grateful and would appreciate if you gave me a follow and liked my articles as i post my perspectives daily and don't plan on ever stopping..
I have compiled a few points of confluence for you and hope it is of value to increasing your understanding on the medium term movements of BTC at this very time.
1) Bollinger bands (bull): After a multi day squeeze on the bands the deviation seems to have finally come to a decision. It may not look so by those of you who do not use the bands but in actual fact it can be seen that the support deviant is beginning to slightly move downwards where as the resistance deviant is consolidating which is a bullish signal. To explain this concept basically is, The band opposite to the potential price movement shifts away from where the price is going, therefore when the price moves up, the support deviant moves further away from the price and the resistance deviant moves closer to the price and visa versa. This is a technique i use as a confluence and it has proven to be a valuable asset within these situations where the Bollinger bands are squeezing. Tell me what you think about this idea and back test it if need be.
2) Moving average (Bear): I am currently using the 20 EMA which is an excellent short/medium term indicators and as the EMA amounts increase the time frame becomes bigger. The price is currently sitting right below the EMA which will act as a strong resistance for the price and will require a lot from the bulls in order to break through these level, as well as another level which i will discuss below that runs directly through the EMA which strengthens the resistance. This is a bearish signal of course.
3) Golden pocket (bull): Today was a good days solely based on the fact that we had a strong run that broke right into the pocket with ease which potentially means we are not being squeezed into decision on where to move as well as the fact that the squeeze was most likely to result in a bearish movement as the technicals where portraying it. Phycologically the price breaking into the pocket is a good sign and some are most likely watching the markets closely in order to see where the price will go when it breaks the pocket as it will have some strong backing with it. If for example we break to the bulls, it is still not a huge buy signal as we still have the Bollinger and pennant formation to break out of. So as i said dont jump the gun based on one indicator, wait for the stars to align.
4) bearish pennant (bear): No matter what anyone says, before we break out of the pennant we are not safe and based on the fact that it is a bearish formation it is not out of the discussion that we bounce off resistance and test or break the support and fall down to the target level of around 23k.
5) MACD (bull): After the MACD diverged bearish it hasn't made much progress and therefore has reversed and seems like a convergence is likely to appear rather sooner than later and my prediction is it will occur somewhere tomorrow or sometime this weekend. If not then price will at least consolidate on the convergence which is possible and has a likelihood of happening.
A reason apart from the technicals is the fact that it seems that the narrative is shifting away from the fear based and negative propaganda regarding BTC on to a move positive and hopeful scenario, which is expected as that is how the game works and institutions understand this metric as there are enough retail traders who are influenced by media to fluctuate the market based on the narrative set by the institutions. It doesn't take much to notice this system of manipulation and therefore I shall tell you to rather think like a institutional trader and sell when the market is looking unstoppable and buy when "crypto is dead" as it takes a few days to shift narratives.
If you have read up until this point i am truly grateful and would appreciate if you gave me a follow and liked my articles as i post my perspectives daily and don't plan on ever stopping..
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.