BTC looking South on many indicatorsThis would be a short term trade, with potential for a longer run.
Key takeaways:
Green 50 Day MA was rejected.
Daily Mid-BB giving out currently.
Stochastic, Stochastic RSI and Smoothed RSI appear to be starting a downtrend.
Potential MACD cross down upcoming.
The chart just doesn't look good with those indicators at this moment. This is during the middle of the daily candle, so there is still hope to hold the Mid-BB but regardless if the daily ends a red candle it appears headed to the bottom of the relatively tight BBs. This move would take the Stochastic, Stochastic RSI, RSI and MAs down as well.
There is a chance that since the BBands have been tight for so long there could be large movement. Since the indicators point down, a short term short could turn into a longer play.
However, as a long term bull I can see hope for a potential bottom here. This could just be the mentioned indicators doing a "reset". By this I mean, price moves down very little while bringing down many key indicators like mentioned. This leaves much room for them to move up. To get the most out of an indicator reset like this, there might be a relatively large red candle while indicators are bottomed and followed by a steady green rally. That one large red candle helps offset the positive momentum of new green candles so that the indicators don't rise too quickly, painting a more enduring bullish picture. If you look at the chart, this would mean price steadily goes down to bottom BBand, dips below it quickly, and rallies steadily towards upper BBand rather quickly.
Long-term bear case: daily MACD crossover, price still below all major MAs.
Long-term bull case: potential indicator reset with a higher low at lower BB.
DISCLAIMER: For educational and entertainment purposes only. Nothing in this content should be interpreted as financial advice or a recommendation to buy or sell any sort of security or investment including all types of crypto. DYOR, TYOB.
