Here's my first idea so be nice! A lot of people are drawing triangles and saying it's soon decision time for Bitcoin and the wider crypto market after a period of consolidation/cool off. I want to take a pretty basic look at the macro-ish view since the big dump in March.
Bitcoin has been above the 3 day 50 MA since late April. Now look at the 20 MA, particularly the flat period in early summer. That looks kind of similar to now, doesn't it? It broke up through that.
Now these two averages are closing in on each other and the question is which one will the price power through in the coming week or two? If a candle closes above the 20 MA I'll be bullish, but under the 50 MA and the outlook is bearish. Simple.
Now what could be the catalysts for a new general market move? Just a few possibilities...
Bearish: Economic downturn / black swan event
Bullish: Technical: Natural continuation of market trend since March / excitement over Ethereum 2 release
Bitcoin has been above the 3 day 50 MA since late April. Now look at the 20 MA, particularly the flat period in early summer. That looks kind of similar to now, doesn't it? It broke up through that.
Now these two averages are closing in on each other and the question is which one will the price power through in the coming week or two? If a candle closes above the 20 MA I'll be bullish, but under the 50 MA and the outlook is bearish. Simple.
Now what could be the catalysts for a new general market move? Just a few possibilities...
Bearish: Economic downturn / black swan event
Bullish: Technical: Natural continuation of market trend since March / excitement over Ethereum 2 release
Comment:
So, it broke up and now we are in a new 3 day period. If this bar stays above 11k, ideally testing the level and ending higher, then my idea will reach it's conclusion and a long entry will be a safer bet.
