Bitcoin Struggles At The 50 EMA, Here's What We Know! (BTC)
Hi friends! Welcome to this update analysis on Bitcoin! Today, we will be assessing the progression of the similarities of Bitcoin's current price action, compared to the bottoming formation that was produced in the bear market of 2015. So, without further ado, let's get right to it!
Looking at the daily BTC chart, we can see that Bitcoin is having a difficult time rising above the 50 EMA (in orange.) This is quite concerning, as far as short term price action is concerned, because when compared to this point in 2015, price had rallied sharply above the 50 EMA. Unfortunately, since I am traveling and posting from my cellphone, I can't post a side-by-side comparison chart. However, you can view my previous comparison analysis, attached below, for reference. So yeah, Bitcoin is struggling to rally above the 50 EMA.
Adding to the slight divergences from the 2015 bottoming formation, we can see that the triangle is extending further than before. If you'll notice, I've actually adjusted the bottom trendline of the triangle from the dashed black trendline, to the solid black trendline at the bottom. I've done this because I'm a bit torn, now that Bitcoin is struggling to rally above the 50. Technically, you can see that where the triangle was originally drawn (black dashed trendline) price has fallen back below it. So, price could continue to trend sideways to lower, but stay inside of this extended version of the triangle, until it actually rises above the 50 EMA.
Let's not forget though, we ARE analysts! We know that the 50 EMA has been powerful resistance, and Bitcoin is continuing to struggle at it. That is not a positive sign. At the same time, a bottoming fractal that matches 2015's bottom has been printed, but we're starting to see some possible deviations from that. So, until price can rally above the 50 EMA my short term view is neutral.
On the MACD, we can see that it is now approaching the zero line. Momentum is slowing down, but it is still currently rising to the upside. On the RSI, we can see that strength was recently rejected at a multi-month resistance level (red horizontal trendline.) Each time that happened, a fall in price occurred next. So, based on that, and the failure at the 50 EMA, there are some reasons to be cautious here.
Overall, there are mixed signals in BTC right now. We may have bottomed already, but indicators are still showing mixed data. Until price can rally above the 50 EMA, providing further confirmation of the 2015 bottoming fractal, I will remain cautiously optimistic that the bottom is in. That's my view, but it's always best to do your own homework. Good luck trading, everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Looking at the daily BTC chart, we can see that Bitcoin is having a difficult time rising above the 50 EMA (in orange.) This is quite concerning, as far as short term price action is concerned, because when compared to this point in 2015, price had rallied sharply above the 50 EMA. Unfortunately, since I am traveling and posting from my cellphone, I can't post a side-by-side comparison chart. However, you can view my previous comparison analysis, attached below, for reference. So yeah, Bitcoin is struggling to rally above the 50 EMA.
Adding to the slight divergences from the 2015 bottoming formation, we can see that the triangle is extending further than before. If you'll notice, I've actually adjusted the bottom trendline of the triangle from the dashed black trendline, to the solid black trendline at the bottom. I've done this because I'm a bit torn, now that Bitcoin is struggling to rally above the 50. Technically, you can see that where the triangle was originally drawn (black dashed trendline) price has fallen back below it. So, price could continue to trend sideways to lower, but stay inside of this extended version of the triangle, until it actually rises above the 50 EMA.
Let's not forget though, we ARE analysts! We know that the 50 EMA has been powerful resistance, and Bitcoin is continuing to struggle at it. That is not a positive sign. At the same time, a bottoming fractal that matches 2015's bottom has been printed, but we're starting to see some possible deviations from that. So, until price can rally above the 50 EMA my short term view is neutral.
On the MACD, we can see that it is now approaching the zero line. Momentum is slowing down, but it is still currently rising to the upside. On the RSI, we can see that strength was recently rejected at a multi-month resistance level (red horizontal trendline.) Each time that happened, a fall in price occurred next. So, based on that, and the failure at the 50 EMA, there are some reasons to be cautious here.
Overall, there are mixed signals in BTC right now. We may have bottomed already, but indicators are still showing mixed data. Until price can rally above the 50 EMA, providing further confirmation of the 2015 bottoming fractal, I will remain cautiously optimistic that the bottom is in. That's my view, but it's always best to do your own homework. Good luck trading, everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-