Bitcoin & The Power of EMA 50
Updated
I've been working on this latest Bitcoin chart for a few days now. We're still in a continued downtrend. I've pointed out the important areas in which the EMA 50 was a huge factor in determining where price action would eventually fall on previous occasions during this downtrend. See the "EMA 50 Down Drive" orange boxed areas. The cyan and blue diagonal arrows indicate the turning point to the end point of the wave.
As a continuation from my Phase 1 & 2 ideas:
Phase 1: Is marked by 2x EMA 50 down drives.
Phase 2: Is marked by 1x EMA 50 down drive.
From my reasoning, we are currently experiencing the second "EMA 50 Down Drive" of the last Phase 1. This second drive continues into our present area, the Phase 2 crooked rectangle area. See the red-orange boxes and diagonal arrow for the predicted area of descent.
The Bitcoin price is likely to fall to a low of around $4400. Other important areas include $5400 - 5900. However, see all indicator price lines from areas that may result in a rebound. It is hard to predict where exactly bounces will occur, but I still see a final price in this period ending around $4400 or so.
As always, zoom in and out, scroll left and right to see more of the chart as needed.
As a continuation from my Phase 1 & 2 ideas:
Phase 1: Is marked by 2x EMA 50 down drives.
Phase 2: Is marked by 1x EMA 50 down drive.
From my reasoning, we are currently experiencing the second "EMA 50 Down Drive" of the last Phase 1. This second drive continues into our present area, the Phase 2 crooked rectangle area. See the red-orange boxes and diagonal arrow for the predicted area of descent.
The Bitcoin price is likely to fall to a low of around $4400. Other important areas include $5400 - 5900. However, see all indicator price lines from areas that may result in a rebound. It is hard to predict where exactly bounces will occur, but I still see a final price in this period ending around $4400 or so.
As always, zoom in and out, scroll left and right to see more of the chart as needed.
Comment
The EMA50 is dropping below $7000 and nearing $6900. The price continues to touch and only just exit the EMA50 to return below it. I forgot to mention this earlier (but it's marked in the chart and in previous ones), $4800 is also an important level to watch out for and is a possible rebound candidate.
Comment
I foresee the next number of days playing out very close to this judging by the EMA50 reaction and the drawn-out behaviour of the present phase: $6900-6800 area down to $6450-$6500 (Present direction)
$6450-6500 back up to $6700-6800 (Next direction)
$6700-6800 down to $6000-6200 (New low direction)
Comment
An Update on the State of Affairs with Bitcoin & Crypto Currencies:- Unnatural spike upwards, exacerbated by triggered stop-losses, margin calls, and liquidations.
- The price has exited the EMA 200, however it is not much over it. Presently the EMA 200 sits around $7850, so expect that as a resistance on the way back down.
- Previous support around $8250 (see fuchsia dotted line) is now acting as a major resistance.
- EMA 50 has increased close to $7250 (was previous lowering into $6900).
- As for my orange diagonal trend line, the price has only exceeding it by a small amount for far, it may need some slight adjusting, but if the price does not increase much more than it already has, then the different phasing idea remains valid.
- It appears as though the momentum upwards has been fading out, however, an increase close to $9000 is still possible (see blue diagonal trend line). A significant breach there would be the first signal that the market may have flipped into a bull market.
- The more likely occurrence is that a lower high was just created, as overall Bitcoin is still in a downward trend and there has not been a significant sign otherwise.
- The big area to watch out for is another test of $6500-6600.
- I still believe we'll be seeing a lower low, but we should temper our expectations to the $5400-5900 first before anything greater occurs (long term outlook is still under $4800).
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.