Do not rely on this notice, nevertheless it is very useful notice and you should pay attention to this when taking decision, especially if you are a hodler.
Flat along the 20 Daily MA as a bearish sign. As we see on the Chart previously such interaction with 20 MA led right to the bottom.
Two examples that I gave on the Chart has one more similarity than just flatting along 20 MA. This similarity is that Price was sitting on its strong support zone and we saw retracements likewise as we see them now.
So can such behavior lead us to the bottom? -Yes, but with low probability.
Can such behavior lead us to the subsequent decline? -Yes, and probability is pretty high, because the Price is under strong resistance and we see the price has not a high chance to close above the one. Also as we know the resistances are more effecient to hold the price than support during a downtrend.
Thank you for reading this idea! Hope it's been useful to you and some of us will turn it into profitable.
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Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts.
That flat resistance is a hidden whale wall, no way getting through it. Expecting a dump.
Anpu
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@usr32, it might be. But we can not say with 100% certanty. It might play also as a zone of interest, and bring a lot of selling when price get to this level again. "Expecting a dump." agree with you at this, there is a high chance of this option)
usr32
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@Anpu, Actually there was lots of market buying from 1 whale (200+ bitcoins on bitstamp) at 7325 bitstamp price yet price did not move an inch at that moment and the orderbook did not change much. To me that looked like a massive hidden sell wall (or an iceberg sell order) absorbing all the market buys.
Anpu
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@usr32, to fully understand how levels and zones of interest form and work, please read this idea)
what's your opinion to this