BTC killer is wounded
Updated
To those of you who do not know, DGD has an inverse correlation with Bitcoin and it is the only coin i know of that exhibits this behavior (if you know another please let me know). This means that when BTC goes down DGD goes up and vice versa and these are not minor runs these are huge runs making this trading pair the most volatile I've seen which is why I love to trade it. However at the moment with BTC tanking there has been little response from DGD which is disappointing as I only managed to scim a 1% on a trade with it. The chart sheds some light on why.
Looking at the daily chart it is clear we are in need of a more significant correction to enable us to go higher and renew this lovely inverse relationship. We have completed a 12345 Elliot wave pattern and likely waves A and B of the correction leaving us in wave C down. On the MACD we are about to complete a bearish cross as well as bearish divergence occuring on the RSI, these two factors are what are likely preventing DGD from going up while BTC corrects. I have given my optimal landing zones on the chart which will likely happen nearing the end of BTC's next bull run (if it has one). The golden pocket territory looks really good because we will likely get the daily 55 EMA converging on golden pocket increasing the chance of a bounce.
We may get a small increase if BTC goes down to its next support at 10150 but the increase will be neglible as DGD is showing no signs of strength or general interest.
Please like and follow for updates and questions are most welcome.
*This is not financial advice*
Looking at the daily chart it is clear we are in need of a more significant correction to enable us to go higher and renew this lovely inverse relationship. We have completed a 12345 Elliot wave pattern and likely waves A and B of the correction leaving us in wave C down. On the MACD we are about to complete a bearish cross as well as bearish divergence occuring on the RSI, these two factors are what are likely preventing DGD from going up while BTC corrects. I have given my optimal landing zones on the chart which will likely happen nearing the end of BTC's next bull run (if it has one). The golden pocket territory looks really good because we will likely get the daily 55 EMA converging on golden pocket increasing the chance of a bounce.
We may get a small increase if BTC goes down to its next support at 10150 but the increase will be neglible as DGD is showing no signs of strength or general interest.
Please like and follow for updates and questions are most welcome.
*This is not financial advice*
Note
We have got bounce off the golden pocket with BTC looking to go down as we speak. I wouldn't recommend entering at all as DGD, like the idea says has been sluggish but keep an eye for a further rally of BTC's tank.Note
Bounce pushed back down it seems fear in the market has prevented any further rally. The next reversal zone should be at the 55 ema (purple) @ 31k sats.Trade active
Congrats to anyone who took the trade was too risky for me I'm afraid haha.Note
Also it appears the inverse relationship is not in play at the moment as I can see DGD going up and down with BTC. I'm guessing we will get this relationship back once we are safely clear from a bear market.Trade active
DGD is showing some signs of life. If BTC tanks further in the the coming days DGD may rocket however it is really hard to say. We have made nice profits at 0.786 and 0.618 fibs at least.Trade active
Trade active
Looking very strong, I believe BTC will test 7.2k in the coming days so we can likely expect the rally to continue. DGD being DGD means targets are hard to define. I'd look to immediately exit this trade when BTC looks like its bouncing. You DO NOT want to be stuck holding DGD when BTC bounces and rallies it will get ugly. Unless you are happy to hold be very nimble in your profit taking.Trade active
Hey guys took this from the usd chart looks likewe broke out of a falling wedge a few days ago and the BTC price is also in the oversold regions still. Could be a good time to buy with BTC overextended.Trade active
I forgot to mention the Daily MACD has had a bullish cross I will be averaging in now.
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