Bitcoin - almost ready to go up but not yet
When I analyse Bitcoin, I really focus on MACD. I don't trade Bitcoin. I use technical analysis to find a good entry point to buy Bitcoin.
I use the following conditions to find a good entry point to buy Bitcoin:
1) MACD lines are properly crossed and the angles of MACD lines are pointing up in a daily chart. Almost crossed is not good enough. The lines need to properly crossed ideally above 0 line.
2) Only if the first condition is met, I look at RSI and Stochastic (9,3,3) in the same chart. Two lines in RSI need to be properly crossed and the lines are about to or crossed above 50 level, and Stochastic (9,3,3) is not in overbought territory.
3) Go to the weekly chart and look at Stochastic (9,3,3). If weekly stochastic lines are crossed and moving upward from below 50 level.
BTC retested both previous monthly and weekly low and the price seems to be moving up. However, it still needs to cross above the previous higher high at around 100k zone which is also the previous weekly and monthly mid price area. The current set up is very similar to the set ups on the 21st April 24 and 01 July 24 where I drew blue vertical lines in the chart. At these times, BTC looked like it was finally about to go up but ended up having another dip. If you look at MACD in those two points (marked in blue square), you can see daily MACD lines looked like they were about to cross but didn't and the stochastic in the weekly chart was still pointing downwards. There is a chance the scenario is playing out right now. I think Bitcoin will eventually start to move up, but before that next leg up, it might have another dip (minor bear trap).
I use the following conditions to find a good entry point to buy Bitcoin:
1) MACD lines are properly crossed and the angles of MACD lines are pointing up in a daily chart. Almost crossed is not good enough. The lines need to properly crossed ideally above 0 line.
2) Only if the first condition is met, I look at RSI and Stochastic (9,3,3) in the same chart. Two lines in RSI need to be properly crossed and the lines are about to or crossed above 50 level, and Stochastic (9,3,3) is not in overbought territory.
3) Go to the weekly chart and look at Stochastic (9,3,3). If weekly stochastic lines are crossed and moving upward from below 50 level.
BTC retested both previous monthly and weekly low and the price seems to be moving up. However, it still needs to cross above the previous higher high at around 100k zone which is also the previous weekly and monthly mid price area. The current set up is very similar to the set ups on the 21st April 24 and 01 July 24 where I drew blue vertical lines in the chart. At these times, BTC looked like it was finally about to go up but ended up having another dip. If you look at MACD in those two points (marked in blue square), you can see daily MACD lines looked like they were about to cross but didn't and the stochastic in the weekly chart was still pointing downwards. There is a chance the scenario is playing out right now. I think Bitcoin will eventually start to move up, but before that next leg up, it might have another dip (minor bear trap).
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