SUBSRATUM vs BITCOIN - Sub, Stellars Long Lost Doppelganger?!
Ok today let’s have a look at Substratum vs Bitcoin!
As you can see on the daily log chart, we have reached our small orange cup and handle target and are currently in the process of consolidating. The good news is that this consolidation period is forming our large light blue cup and handles well... handle. A confirmed breakout above the rim would aim to take us up to the large cup and handle target. Our buy zone in highlighted in green once we have this confirmation.
Much like my analysis of Stellar - A look at our other indicators might tell us if a break out is likely to occur shortly, or we will have to wait a little longer.
Aroon Up is below 50 and Aroon Down is flat to the floor at zero. This indicates no change in trend is expected in the very short term. With the Aroon Up below 50 we are subsequently not going to move higher either; which suggests a more likely scenario to play out in the immediate short term is for a retrace from the rim in preparation for the break out above the rim.
RSi is at about 63 so we are not overbought nor oversold, indicating we could go either way here. However when we combine this knowledge with what the Aroon indicator is telling us, this further supports a likely retrace from the rim.
The MACD is level with the signal line, with not a lot of positive momentum. If we retrace from the rim it will actually allow us to fall below zero which would ultimately provide us with a lot of the required room needed for the upward momentum which will be generated by the break out.
The EMA 50 is crossed over bullish and trending well above the 200 EMA. Considering we are currently trading well above the 50 EMA; it gives me more reason to believe a retrace from the rim is what we are in store for in the short term. We have some support below us at the dashed green line, so a retest here is possible. It is also possible that we could test the EMA 50 as support. Regardless of where it occurs, if we retrace and find support at either of these points it will provide us with a lot of room for our run up to the target.
In summary I am extremely bullish . I don’t think we will break out in the next day or two and that we will likely see a retrace to the green dashed trend line/EMA 50. We will then have plenty of room for momentum to build and break us out to the upside of the rim. With confirmation of this breakout we will buy in the buy zone and then set about our mission to reach the target. To be risk adverse set laddered sell orders on the way up to the target and move your stop loss up if you use them. Once the target is reached we will likely be exhausted and set about a period of consolidation. As I mentioned with XLM you should heed this word of caution - If we do break out in the next day or two, I don't think we will have the room for the momentum required to reach the target, so a retrace in the coming days is actually a better scenario. If we do break out early then watch for good volume and trade safely, taking profits where you see fit.
Cheers
As you can see on the daily log chart, we have reached our small orange cup and handle target and are currently in the process of consolidating. The good news is that this consolidation period is forming our large light blue cup and handles well... handle. A confirmed breakout above the rim would aim to take us up to the large cup and handle target. Our buy zone in highlighted in green once we have this confirmation.
Much like my analysis of Stellar - A look at our other indicators might tell us if a break out is likely to occur shortly, or we will have to wait a little longer.
Aroon Up is below 50 and Aroon Down is flat to the floor at zero. This indicates no change in trend is expected in the very short term. With the Aroon Up below 50 we are subsequently not going to move higher either; which suggests a more likely scenario to play out in the immediate short term is for a retrace from the rim in preparation for the break out above the rim.
RSi is at about 63 so we are not overbought nor oversold, indicating we could go either way here. However when we combine this knowledge with what the Aroon indicator is telling us, this further supports a likely retrace from the rim.
The MACD is level with the signal line, with not a lot of positive momentum. If we retrace from the rim it will actually allow us to fall below zero which would ultimately provide us with a lot of the required room needed for the upward momentum which will be generated by the break out.
The EMA 50 is crossed over bullish and trending well above the 200 EMA. Considering we are currently trading well above the 50 EMA; it gives me more reason to believe a retrace from the rim is what we are in store for in the short term. We have some support below us at the dashed green line, so a retest here is possible. It is also possible that we could test the EMA 50 as support. Regardless of where it occurs, if we retrace and find support at either of these points it will provide us with a lot of room for our run up to the target.
In summary I am extremely bullish . I don’t think we will break out in the next day or two and that we will likely see a retrace to the green dashed trend line/EMA 50. We will then have plenty of room for momentum to build and break us out to the upside of the rim. With confirmation of this breakout we will buy in the buy zone and then set about our mission to reach the target. To be risk adverse set laddered sell orders on the way up to the target and move your stop loss up if you use them. Once the target is reached we will likely be exhausted and set about a period of consolidation. As I mentioned with XLM you should heed this word of caution - If we do break out in the next day or two, I don't think we will have the room for the momentum required to reach the target, so a retrace in the coming days is actually a better scenario. If we do break out early then watch for good volume and trade safely, taking profits where you see fit.
Cheers
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