BTCUSD: Aiming in by using Data On Previous Engagements
Updated
Introduction
Bitcoin continues to take a beating and I am producing different styles of charts to reach different styles of investors and traders, hoping to show them something in a system they recognize. I have done divergence on indicators, I have use bollinger bands, I have done volume analysis, everything I can to help. This is to help out the moving averages traders. See my linked ideas if you want some more confirmation.
This takes a wide shot of the 100, 200, and 400 daily EMAS because they have historically been shown to be very useful in these situations. And because I never like to pull a trigger on patterns or Moving averages alone (I usually like divergences to back up my charting) I have an indicator that has proved useful to show where BTC is a value buy. The NVT is network value divided by transactions and due to the color bands provided by aamonkey we can see generally where NTV is expensive and where it is cheap.
Current Scenario
As it stands price action is in a triangle and hanging onto the 100 EMA and very well maybe consolidating for its next leg down. The charting does permit some more sideways action but with the totality of the macro environment and the negativity in the news I think sentiment is going to be enough that hands get weak and look to buy a dip.
We have a lot of chances to swing trade BTC over the next couple of months, and that means a lot of chances to get reck'd if you forget the bigger picture. And part of that bigger picture is to not forget the orange and purple trendlines. In 2018 the purple trendline acted as a slide while price action took months to form a falling wedge and if you thought early on that previous resistance was now support your gains would have slid down along with price for months until you saw the wedge form.
Bitcoin continues to take a beating and I am producing different styles of charts to reach different styles of investors and traders, hoping to show them something in a system they recognize. I have done divergence on indicators, I have use bollinger bands, I have done volume analysis, everything I can to help. This is to help out the moving averages traders. See my linked ideas if you want some more confirmation.
This takes a wide shot of the 100, 200, and 400 daily EMAS because they have historically been shown to be very useful in these situations. And because I never like to pull a trigger on patterns or Moving averages alone (I usually like divergences to back up my charting) I have an indicator that has proved useful to show where BTC is a value buy. The NVT is network value divided by transactions and due to the color bands provided by aamonkey we can see generally where NTV is expensive and where it is cheap.
Current Scenario
As it stands price action is in a triangle and hanging onto the 100 EMA and very well maybe consolidating for its next leg down. The charting does permit some more sideways action but with the totality of the macro environment and the negativity in the news I think sentiment is going to be enough that hands get weak and look to buy a dip.
We have a lot of chances to swing trade BTC over the next couple of months, and that means a lot of chances to get reck'd if you forget the bigger picture. And part of that bigger picture is to not forget the orange and purple trendlines. In 2018 the purple trendline acted as a slide while price action took months to form a falling wedge and if you thought early on that previous resistance was now support your gains would have slid down along with price for months until you saw the wedge form.
Note
Opps, forgot the zoom in Note
Very few people called this dip with the precision I did. Here we have the price action hitting the 400 week like an absolute beast. I still have a short on EOSUSD I am holding because my target wasn't hit there just yet. But really, who was off by less than 4% that you know of? Let me know. The only guy I know that made this one his primary calls, and not some disclaimer to return to to say he covered all of his bases, was Crypto Kirby on Youtube. I will not be going long until I see the NVT in the green on the daily and that may be a bull trap. When the NVT is on the weekly and green we can accumulate.
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