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Following Sunday's selling, BTC has more than recovered that drop within the week but we see the price today pulling a little back again. This pull-back stopped BTC from extending the Higher Highs sequence it started after the mid-March collapse and instead we are now sitting on Lower Highs. This Lower Highs trend-line must be avoided at all costs and I will explain why.
** The Lower Highs trend-line we should avoid **
Last time Bitcoin printed a similar Lower Highs sequence was it mid February when we all remember that it was the beginning of the fall. If this is not avoided and Higher Highs are not made we can have a similar sell-off (not as strong as March's though unless COVID causes another flash crash on the stock markets) back to the 1D MA200 or even lower to the Symmetrical Support. We are close to printing a Golden Cross (MA50 crossing over the MA200) which is theoretically a formation but as seen on the Lower Highs sequence of mid February it was actually as it was formed at the top.
** The LMACD shows there might still be some gas in the tank **
The LMACD, our very accurate technical indicator throughout the previous years, may actually save the day. I will explain why. As seen on the chart, the LMACD made a cross on Sunday's drop but with this week's recovery, is close to printing a cross now. The very same cross sequence was seen in late January when Lower Highs were again formed on the price candles (though not as strong as the current ones) but the LMACD made successive crosses ( to ) and the uptrend was extended making Higher Highs all the way to mid-February's High.
So where do you think we are? At the top of the April rally or roughly in the middle as the LMACD may suggest? Whatever the speculation one thing is for sure. BTC must break the current Lower Highs trend-line to avoid a sell-off taking place. Feel free to share your work and let me know in the comments section!
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