Bottom of the bull flag for OMGBTC?
Updated
OMGBTC has historically traded on a Bull flag ( a rapid rise in price, followed by a period of either sideways or slowly declining price) It seems to be reaching the end of that flag.
The last 2 weeks have been a steady decline for OMG. Currently it's resting at the start of it's former Resistance area. Another drop in BTC price could potentially see us fall further into that resistance area.
This resistance area does appear strong; the start and current barrier is the psychological resistance of 3.00 on the USDT charts, and we all like round numbers. This area is also right above the EMA 100.
It wouldn't surprise me if we dropped a LITTLE bit more, the market seems very choppy right now and until BTC settles down I doubt we'll see the pop.
BUYING IN?
Best strategy is to wait for the first big candle out of the channel to post and buy in after. Note that as we saw such a large increase last time, there may be "fakeouts" where we see breaks from that channel that aren't true.
How do we get around that? Watch the RSI: I've marked on the chart, preceding the past pumps we see a spike on RSI the days immediately before the action. Looks like a plateau, instead of a mountain, to put it plainly. We aren't seeing this right now, further increasing the feeling we might be waiting a while on this.
Historically, it doesn't go all the way all at once, you get a few days of build up you should notice by the combination of a clear deviation from the channel as well as an RSI spike preceding it and continuing through.
If you don't want to miss any action you could buy in some now, and DCA over the next little while as with a current 67% drop in price from ATH we're likely but not guaranteed to see sideways movement for a while. But be ready to hodl for a bit; the last cycle took almost 3 months to complete.
Take profit for me would be previous ATH, likely conservative. We could see gains quite a bit higher than that so split your TP beyond that if you're feeling the greed.
I'm a simple guy that you don't know posting his ideas on the internet for the sake of improving as a human being. If you take this as financial advice, that's on you.
Feedback, criticism and crude humor are welcome :)
The last 2 weeks have been a steady decline for OMG. Currently it's resting at the start of it's former Resistance area. Another drop in BTC price could potentially see us fall further into that resistance area.
This resistance area does appear strong; the start and current barrier is the psychological resistance of 3.00 on the USDT charts, and we all like round numbers. This area is also right above the EMA 100.
It wouldn't surprise me if we dropped a LITTLE bit more, the market seems very choppy right now and until BTC settles down I doubt we'll see the pop.
BUYING IN?
Best strategy is to wait for the first big candle out of the channel to post and buy in after. Note that as we saw such a large increase last time, there may be "fakeouts" where we see breaks from that channel that aren't true.
How do we get around that? Watch the RSI: I've marked on the chart, preceding the past pumps we see a spike on RSI the days immediately before the action. Looks like a plateau, instead of a mountain, to put it plainly. We aren't seeing this right now, further increasing the feeling we might be waiting a while on this.
Historically, it doesn't go all the way all at once, you get a few days of build up you should notice by the combination of a clear deviation from the channel as well as an RSI spike preceding it and continuing through.
If you don't want to miss any action you could buy in some now, and DCA over the next little while as with a current 67% drop in price from ATH we're likely but not guaranteed to see sideways movement for a while. But be ready to hodl for a bit; the last cycle took almost 3 months to complete.
Take profit for me would be previous ATH, likely conservative. We could see gains quite a bit higher than that so split your TP beyond that if you're feeling the greed.
I'm a simple guy that you don't know posting his ideas on the internet for the sake of improving as a human being. If you take this as financial advice, that's on you.
Feedback, criticism and crude humor are welcome :)
Note
OMG has dipped into the watch zone, seems to be facing pretty stiff resistance and is near the top of the descending channel. Depending on how the overall market plays out today I may begin the investment.Note
Still hanging out in the watch zone. going to wait for a breakout on this one.Note
BIG tick up first thing today. Almost at top of channel. Breakout imminent?
Note
As I write this , OMG is testing the top of the resistance channel after seeing 23% gains on the 24hr delta. The Stoch is not showing us signs of a breakout. But could be happening. Enjoy your profits if you bought in the buy zone :)
Come hang out with me on telegram, it's free and I won't be too mean too mean to you:
t.me/KadnimCrypto
t.me/KadnimCrypto
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