BTC Searching for Support
BTC had an infamous death cross back in mid November (red ellipse) and has struggled to keep the 200 day EMA above the 50 day EMA ever since. Recently however the market has been making effort to do just that.
There has been quite a bit of volume recently suggesting seller exhaustion may be around the corner. The price is forming a strong upwards channel in which is steadily collecting confirmation points along the lower support line. It is still finding resistance with the upper bound but greater volume could possibly break it through.
Back in late October, the 50 and 200 EMA lines almost made a death cross but instead the market rallied and within 2 days went from $7490 to $10,480. Unsustainable at the time the price slide from there to a lower low of around $6620, a natural market correction happening over 1.5 months.
Now the market seems to be on the verge of a re-crossing of the EMA's back to a bullish trend . It will take around another week fr this switch to be confirmed and in that time BTC needs to steadily gain sup[port at the price level it is at.
The gold line directly connects with the support level of the current channel. This forms a natural Thomas Denmark ( TD ) bullish trend . That is, the price was being consolidated within that triangle and the market had 3 times where it hit the lower bound, which is a bullish trend line , and it could have slid out of the channel but instead bounced to a higher high, within four candles. For more on TD indicators please read this article: forextraininggroup.com/introduction-tom-demark-indicators-studies/
There are many bullish signals for BTC in the news recently such as the famous hash ribbons turning buy, newsbtc.com/2019/12/27/key-bitcoin-signal-preceded-330-rally-14000-flashes-again/, which makes this a precarious time for BTC because the bullish trend wont be con rimed until we have a healthy market rally to ~10k that isn't within a 48 hour window, with sustainable volume .
There has been quite a bit of volume recently suggesting seller exhaustion may be around the corner. The price is forming a strong upwards channel in which is steadily collecting confirmation points along the lower support line. It is still finding resistance with the upper bound but greater volume could possibly break it through.
Back in late October, the 50 and 200 EMA lines almost made a death cross but instead the market rallied and within 2 days went from $7490 to $10,480. Unsustainable at the time the price slide from there to a lower low of around $6620, a natural market correction happening over 1.5 months.
Now the market seems to be on the verge of a re-crossing of the EMA's back to a bullish trend . It will take around another week fr this switch to be confirmed and in that time BTC needs to steadily gain sup[port at the price level it is at.
The gold line directly connects with the support level of the current channel. This forms a natural Thomas Denmark ( TD ) bullish trend . That is, the price was being consolidated within that triangle and the market had 3 times where it hit the lower bound, which is a bullish trend line , and it could have slid out of the channel but instead bounced to a higher high, within four candles. For more on TD indicators please read this article: forextraininggroup.com/introduction-tom-demark-indicators-studies/
There are many bullish signals for BTC in the news recently such as the famous hash ribbons turning buy, newsbtc.com/2019/12/27/key-bitcoin-signal-preceded-330-rally-14000-flashes-again/, which makes this a precarious time for BTC because the bullish trend wont be con rimed until we have a healthy market rally to ~10k that isn't within a 48 hour window, with sustainable volume .
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.