Wouldn't it be nice... Good Vibrations. God only knows! - BTC
Good Evening and welcome to a technical analysis on the mother of them all... BITCOIN! We're gonna have Fun, Fun, Fun, Surfin' this Safari!
Looking at the DMI we can see that the -DM and the +DM crossed earlier this morning just after we touched the resistance line. I have highlighted on the DMI the last time we saw this crossover which was back on 2/21. This signaled a bearish move and sent us back to the support which we touched on 2/25.
Just to note from the crossover on 2/21 to the end of the drop on 2/25 took 27 bars. Since the crossover today we have had a drop of 5 bars... so if we repeat we could see a drop for a few more days. But there is no history to say this will repeat it's just an observation. Since the start of these look the same we could somewhat see a similar pattern.
Back to the DMI chart, we can see the ADX at the time of 2/21 was high and showing a strong trend, and we are currently seeing the same. When we are above 25 on the ADX that signals a strong trend and we are currently at 29.006. ALSO, looking at the ADX in the DMI I have drawn a line to show we are currently show lower highs. With all of what we are seeing on the DMI this currently shows a bearish move.
Looking at the MACD, I have also highlighted the same time frames on the dates mentioned above. We can see a crossover on the MACD just before the crossover on the DMI. This also signals a bearish move.
With all of that being said, since the drop on 2/6 we have started (and are currently still in) a new upward channel. I have marked a Major Support zone and a Major Resistance zone. If we fall down to the support line again we would drop out of the upward channel. This will be a critical point for BTC to show support and to bounce back up. IF we bounce we will reassess our upward channel and adjust to a narrow trading range. BUT if we fall we could fall back to the next support which would be around $7,800.
As of now based on what the chart says we are headed down and could definitely touch the support line again. The next few days are critical to see where BTC goes from here, lets keep a close eye on this and these indicators to see where we are headed next!
IF I get over 15 likes on this post I will post an update on BTC on 3/10!
Happy Trading :)
Much Love
DustyPH
***This information is not a recommendation to buy or sell***
Looking at the DMI we can see that the -DM and the +DM crossed earlier this morning just after we touched the resistance line. I have highlighted on the DMI the last time we saw this crossover which was back on 2/21. This signaled a bearish move and sent us back to the support which we touched on 2/25.
Just to note from the crossover on 2/21 to the end of the drop on 2/25 took 27 bars. Since the crossover today we have had a drop of 5 bars... so if we repeat we could see a drop for a few more days. But there is no history to say this will repeat it's just an observation. Since the start of these look the same we could somewhat see a similar pattern.
Back to the DMI chart, we can see the ADX at the time of 2/21 was high and showing a strong trend, and we are currently seeing the same. When we are above 25 on the ADX that signals a strong trend and we are currently at 29.006. ALSO, looking at the ADX in the DMI I have drawn a line to show we are currently show lower highs. With all of what we are seeing on the DMI this currently shows a bearish move.
Looking at the MACD, I have also highlighted the same time frames on the dates mentioned above. We can see a crossover on the MACD just before the crossover on the DMI. This also signals a bearish move.
With all of that being said, since the drop on 2/6 we have started (and are currently still in) a new upward channel. I have marked a Major Support zone and a Major Resistance zone. If we fall down to the support line again we would drop out of the upward channel. This will be a critical point for BTC to show support and to bounce back up. IF we bounce we will reassess our upward channel and adjust to a narrow trading range. BUT if we fall we could fall back to the next support which would be around $7,800.
As of now based on what the chart says we are headed down and could definitely touch the support line again. The next few days are critical to see where BTC goes from here, lets keep a close eye on this and these indicators to see where we are headed next!
IF I get over 15 likes on this post I will post an update on BTC on 3/10!
Happy Trading :)
Much Love
DustyPH
***This information is not a recommendation to buy or sell***
Thank you for the likes on this post! I will post an update soon on BTC!!