RSI/SMA/Pitch Fork Support and Res. BTC BREAKING BEAR TREND.
Historically a shift to a bear cycle in BTC is marked by a 50% drop within a 2 week period. If you actually look at this latest correction it really only measures about -27%. Thus I feel it does not warrant any closing of short term positions. I actually find this drop to be comparable to the April 2017, prior to the REAL FOMO coming in.
The chart shown here is BTC, derived from the Coinbase exchange. The beginning of the channel shown(also where the pitchfork begins) is where a parabolic shift up began(Representing an explosion of growth), this can be confirmed by an uptick in volume, as visualized by the volume SMA. The purple SMA is 100 length, which historically is also broken when a bear cycle begins. The blue SMA is 16 length. It is KEY that the 16 length SMA is broken for the Bull trend to continue.
The RSI is often said to be obsolete, clearly this isn't the case on 4hr charts. This makes sense since many day traders and swing traders use the RSI oscillator, but on the intra-day charts primarily.
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The chart shown here is BTC, derived from the Coinbase exchange. The beginning of the channel shown(also where the pitchfork begins) is where a parabolic shift up began(Representing an explosion of growth), this can be confirmed by an uptick in volume, as visualized by the volume SMA. The purple SMA is 100 length, which historically is also broken when a bear cycle begins. The blue SMA is 16 length. It is KEY that the 16 length SMA is broken for the Bull trend to continue.
The RSI is often said to be obsolete, clearly this isn't the case on 4hr charts. This makes sense since many day traders and swing traders use the RSI oscillator, but on the intra-day charts primarily.
Please like and share!!
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