Bitcoin - Are the bulls sneaking back in or?
Updated
What is Bitcoin telling us today?!
If you had a look at my previous post on "Recognising trend reversals in Bitcoin", you would have seen this one coming from a mile away! We are already up around 15% in the meanwhile!
PS: in my post following the one just mentioned, I was saying that it wouldn't get much more exciting than that moment: make or break! It was break, unfortunately - resistance was tested but we all know what happens if that fails - big price retracement.
So let's start heading for another test of that resistance, whadda ya say?
First off - again my side note on Heikin Ashi candles:
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Sidenote on Heikin Ashi (feel free to skip this)
The difference lies in how candle sticks are calculated:
Close = (open + high + low + close) / 4
High = maximum of high, open, or close (whichever is highest)
Low = minimum of low, open, or close (whichever is lowest)
Open = (open of previous bar + close of previous bar) / 2
FYI: A doji candle is a commonly found pattern in a candle stick chart, characterised by being small in length - meaning a small trading range - and with an open - and close price that are virtually equal.
FYI2: A spinning top is another Japanese candle stick pattern with a short body found in the middle of two long wicks.
FYI3: Heikin Ashi candles can be found in Trading view under the candle stick section and by clicking the 4rd option; these work somewhat differently than regular candle sticks.
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--> So… let's look at the chart today: we had ourselves another Heikin Ashi spinning top in "4", followed by a first green candle, which is generally typical for a trend reversal (in this case: bullish).
--> We also see the Stochastic Momentum Index (“SMI”) hitting a bullish cross at/under the green buy signal zone. That means we are going to see some more upward price movement – and it is already evident in what Bitcoin is doing right now (first nice green candle and upward movement).
--> If we look at MACD, we don’t have a clear buy/sell cross yet, but it looks like the blue line is going to cross over the red one, which would be bullish.
--> RSI curving upward again
--> CCI as well, right from the oversold area
As a side note: if we look at the 4-hourly chart, we are seeing a little bit of the opposite, likely a downward bump before we can head a little higher. Downward price pressure isn't gone yet! (look at the CCI and the "SMI"), they are not exactly happily welcoming us (look out for the dojis!) - btw, as you can see, there was also a beautiful doji on the green Fibonacci support line, just before the upward 4-hourly movement started again ;-) )
If you had a look at my previous post on "Recognising trend reversals in Bitcoin", you would have seen this one coming from a mile away! We are already up around 15% in the meanwhile!
PS: in my post following the one just mentioned, I was saying that it wouldn't get much more exciting than that moment: make or break! It was break, unfortunately - resistance was tested but we all know what happens if that fails - big price retracement.
So let's start heading for another test of that resistance, whadda ya say?
First off - again my side note on Heikin Ashi candles:
---------------------------------------------------------------------------------------------------------------------------------------------------
Sidenote on Heikin Ashi (feel free to skip this)
The difference lies in how candle sticks are calculated:
Close = (open + high + low + close) / 4
High = maximum of high, open, or close (whichever is highest)
Low = minimum of low, open, or close (whichever is lowest)
Open = (open of previous bar + close of previous bar) / 2
FYI: A doji candle is a commonly found pattern in a candle stick chart, characterised by being small in length - meaning a small trading range - and with an open - and close price that are virtually equal.
FYI2: A spinning top is another Japanese candle stick pattern with a short body found in the middle of two long wicks.
FYI3: Heikin Ashi candles can be found in Trading view under the candle stick section and by clicking the 4rd option; these work somewhat differently than regular candle sticks.
---------------------------------------------------------------------------------------------------------------------------------------------------
--> So… let's look at the chart today: we had ourselves another Heikin Ashi spinning top in "4", followed by a first green candle, which is generally typical for a trend reversal (in this case: bullish).
--> We also see the Stochastic Momentum Index (“SMI”) hitting a bullish cross at/under the green buy signal zone. That means we are going to see some more upward price movement – and it is already evident in what Bitcoin is doing right now (first nice green candle and upward movement).
--> If we look at MACD, we don’t have a clear buy/sell cross yet, but it looks like the blue line is going to cross over the red one, which would be bullish.
--> RSI curving upward again
--> CCI as well, right from the oversold area
As a side note: if we look at the 4-hourly chart, we are seeing a little bit of the opposite, likely a downward bump before we can head a little higher. Downward price pressure isn't gone yet! (look at the CCI and the "SMI"), they are not exactly happily welcoming us (look out for the dojis!) - btw, as you can see, there was also a beautiful doji on the green Fibonacci support line, just before the upward 4-hourly movement started again ;-) )
Note
So the candle following my doji turned into another doji. That is indecisiveness. Of course, indecisiveness comes before any up/downward trend. The question is - what will it be? On the daily we have a bullish SMI, and a bearish MACD. Same for the 4-hourly. Ambiguous stuff :)
Divergence in the CVI hints to bullish stand.
Let the whales decide? :-D
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