Yesterday I shared my ideas about BTC based on the weekly timeframe which you can read in the post from the related ideas. During my stream I provided more details about BTC market and further movements - you can find more details in my status bar and below this post. Watch this stream for better understanding of what I'm talking about. So now, let's look at the daily chart based on Bitstamp prices and try to understand the further market movements based on all signals which we have now.
The price reached the strong resistance zone at 6000.00 level. The price action in this zone will be very important for further market movements as this level is very important for the market. When the market was bearish, 6000.00 acted as a bottom for a long period. When the market dropped below it, we had to start thinking about this zone as the strong resistance zone. Now the price is in this zone and we must have really strong reasons for breaking above it.
Again, I need to explain, I can stay against the crowd talking about the bullish run and only about it. I don't care because I follow the markets and signals from these markets. I don't follow the crowd as there are too many traders involved in crypto trading who have no knowledge and very poor experience in trading. If they want to make mistakes in trading, it's their choice.
The market looks overbought - it's fact. The price is at the strong resistance zone - it's a fact. It's time for the correction movement and the market will do it. It's just the question of time. If we look at the indicators, we will get the following signals:
- RSI is in the overbought zone but moves upward. It's a bullish signal but the market is overbought. If RSI line starts falling from this zone, it will give us a good reversal signal and confirmation for the price bouncing.
- MACD lines and histogram support the upward movement, as the market has some space for the upward movement or sideways movement at or above 6000.00 level, such signals from MACD are logical. But again if the price starts falling, bearish signals from MACD will be strong.
- DMI is bullish and confirms trend market conditions. ADX line supports the strength of buyers. How many of them decide to rush with the breakout above the strong resistance zone? Any ideas, please write in comments.
In spite of signals from indicators which are still bullish, the price position and chart information tell us more about bearish movement. And what is more important - the downward movement as the correction will be much more logical in the bullish structure than just the continuation of the uptrend. Think about it!
If you have your personal opinion, share it in comments! If you are strong bullish - share your arguments in comments! Let's discuss.
Also, I will be grateful if you support my work by clicking LIKE button. Thank you!
The price reached the strong resistance zone at 6000.00 level. The price action in this zone will be very important for further market movements as this level is very important for the market. When the market was bearish, 6000.00 acted as a bottom for a long period. When the market dropped below it, we had to start thinking about this zone as the strong resistance zone. Now the price is in this zone and we must have really strong reasons for breaking above it.
Again, I need to explain, I can stay against the crowd talking about the bullish run and only about it. I don't care because I follow the markets and signals from these markets. I don't follow the crowd as there are too many traders involved in crypto trading who have no knowledge and very poor experience in trading. If they want to make mistakes in trading, it's their choice.
The market looks overbought - it's fact. The price is at the strong resistance zone - it's a fact. It's time for the correction movement and the market will do it. It's just the question of time. If we look at the indicators, we will get the following signals:
- RSI is in the overbought zone but moves upward. It's a bullish signal but the market is overbought. If RSI line starts falling from this zone, it will give us a good reversal signal and confirmation for the price bouncing.
- MACD lines and histogram support the upward movement, as the market has some space for the upward movement or sideways movement at or above 6000.00 level, such signals from MACD are logical. But again if the price starts falling, bearish signals from MACD will be strong.
- DMI is bullish and confirms trend market conditions. ADX line supports the strength of buyers. How many of them decide to rush with the breakout above the strong resistance zone? Any ideas, please write in comments.
In spite of signals from indicators which are still bullish, the price position and chart information tell us more about bearish movement. And what is more important - the downward movement as the correction will be much more logical in the bullish structure than just the continuation of the uptrend. Think about it!
If you have your personal opinion, share it in comments! If you are strong bullish - share your arguments in comments! Let's discuss.
Also, I will be grateful if you support my work by clicking LIKE button. Thank you!
Comment:
I'm working under a new post based on FA. Also I would like to inform you that today, at 17:00UTC I will make the live stream about the algo trading. You can find all information in my status bar on the page. I will be glad if you take part in this stream.
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Share with you the ideas based on the important news. I will be grateful for your feedback!
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Algo Trading - New Stream will be started in 1 hour. Get more details from my status bar.
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