I am extremely bullish on bitcoin and especially alt coins. I know there is a lot of fear in the market right now and hopefully this post can put you at ease. I wanted to remind everyone of a few things. In the 2017 bull market, Bitcoin tested the 20 and 50 MA on the weekly chart several times. It practically danced across those lines. 30-40% price corrections occurred many times in the previous bull market. Please note, a market cannot sustain itself by only going up. Market corrections are healthy and are NEEDED in order to make larger moves to the upside.
Here are the technicals:
1. Bitcoin bounced perfectly off its legacy trendlines from way back in October. This also lines up with the 20 MA on the weekly chart. A bounce was healthy and much needed.
2. Price action is BULLISH. We can see that volume is going down as price is going down.
3. Bitcoin has broken its downward trend. A new trend will be forming that will most likely be sideways for accumulation (allowing for alt season to occur) or up.
4. MACD is showing waning selling momentum for 4 consecutive days. - This is bullish and indicates selling pressure is weakening.
5. RSI is showing a lower low with a higher low in price. - This is bullish!
6. It is the end of the month and Bitcoin futures expire. At the end of every month we have seen a large drop in price as investors were anticipating MAX PAIN. This was immediately followed by a large pump.
7. The weekly and monthly charts needed to cool off. A large price dip was much needed to keep a healthy and sustainable bull market.
I hope this helps some of you who are in fear or wondering if you should re-enter the market. I fully believe this drop was healthy and much needed for bitcoin. These levels are going to be used as accumulation and I believe a large price increase will come in the middle to late May.
As always, be patient, use risk management, and good luck trading!
How is painting a LL and LH, with decreasing volume and price a bullish sign? Also, seems that both RSI and MACD have bearish divergences. Not trying to sound smart. I'm genuinely curious.
RomanXIV
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@saulve depends on perspective but I compare everything with price action. Price action is bullish with volume going down as price is going down. Plus this pattern is a dump and run bottom pattern
Yes, ETH seems to be supercharged and leading them all but BTC dominance in my view will be making a comeback after a short dip under 50%. Looking good Roman.