This analysis is going to be a pure review of the technical factors surrounding Bitcoin since there’s been a furor of price action over the past few weeks.
Let’s start off by taking a look at the EMAs for Bitcoin on the daily resolution:
Dissecting the chart above:
1. The golden line = EMA50
2. The purple line = EMA-200
One of the annotations on the chart above was noting that a death cross did not take place on the daily resolution for Bitcoin.
EMAs as Supports for the Bitcoin Price
Below is another look at the price action for Bitcoin:
In the chart above, we can see that :
1. The price is riding directly on the EMA100 ($9.3k)
2. The EMA50 is directly below the EMA100 at ($8.9k)
3. Below the EMA50 is the EMA200 at $8.6k
Each of these points serve as potent support points with the EMA50 being the strongest support point of all.
These are support points that traders should remain cognizant of when formulating trade ideas going forward.
Potential Bull Pennant
If we ‘zoom out’ a bit on the daily resolution, it appears as though there is a ‘bull pennant’ chart formation that’s formed itself (during this consolidation period):
Bull pennants are continuation patterns that occur after a sizable increase in the price (like what was exemplified with Bitcoin on October 26th and 27th).
The pennant strongly resembles an actual flag pennant, hence the name.
The ‘pennant’ part of the formation typically occurs during consolidation, making this pennant portion a consolidation pattern.
A break to the north (with volume) is typically the major sign that the pattern is active and will complete itself.
Hint: It is important to remember that there is no guarantee that every pattern will complete itself.
See below:
Assuming the price were to break upward to the north of this pennant and fulfill the pattern, then the target from this breakout would be +30%/$2.3k USD from the exit point (same size as the flagpole).
That would put the price at approximately $11.5k/$11.6k.
Balance of Power RSI
The BoP RSI for Bitcoin on the daily resolution shows consistently increasing buy pressure over time (see below):
MACD
The MACD is still questionable for Bitcoin on the daily resolution:
ZN Double Reversion Ribbon V2
Below is the double reversion ribbon:
We can see a bearish cross of the ribbon above, as well. There aren’t too many additional details apart from that, that can be discerned from the photo above (on the daily resolution).
Relative Strength Index
Below is the RSI(14) for Bitcoin on the daily resolution:
The RSI(14) looks very bullish on the daily resolution.
In terms of ‘weighing’ the RSI(14) vs. the other indicators (which are all ambivalent/bearish), the RSI(14) should be weighed heavily, in comparison.
Conclusion
Bitcoin on the daily seems to be indicating a propensity for some further consolidation before the price continues on its way upward.
Points/Recap :
1. There are some substantial points of underlying support provided by the EMA50/EMA200/EMA100; in order for the price to decrease substantially, significant bearish price action will be requisite
2. The significant price increase that Bitcoin experienced recently has flipped a lot of the general outlook for Bitcoin moving forward in the near future (vs. what it was prior; i.e., Bitcoin soaring past the EMA50 did a lot to change projections)
3. Fundamentals seem to be decoupled, to a large extent, from Bitcoin’s price action. Part of this is due to blatant misinformation (will be covered elsewhere), another part is due to apathy to outside information / pure speculative trading that seems to occur in a vacuum that is almost entirely unresponsive to ‘real world’ events
R/R :
Let’s start off by taking a look at the EMAs for Bitcoin on the daily resolution:
Dissecting the chart above:
1. The golden line = EMA50
2. The purple line = EMA-200
One of the annotations on the chart above was noting that a death cross did not take place on the daily resolution for Bitcoin.
EMAs as Supports for the Bitcoin Price
Below is another look at the price action for Bitcoin:
In the chart above, we can see that :
1. The price is riding directly on the EMA100 ($9.3k)
2. The EMA50 is directly below the EMA100 at ($8.9k)
3. Below the EMA50 is the EMA200 at $8.6k
Each of these points serve as potent support points with the EMA50 being the strongest support point of all.
These are support points that traders should remain cognizant of when formulating trade ideas going forward.
Potential Bull Pennant
If we ‘zoom out’ a bit on the daily resolution, it appears as though there is a ‘bull pennant’ chart formation that’s formed itself (during this consolidation period):
Bull pennants are continuation patterns that occur after a sizable increase in the price (like what was exemplified with Bitcoin on October 26th and 27th).
The pennant strongly resembles an actual flag pennant, hence the name.
The ‘pennant’ part of the formation typically occurs during consolidation, making this pennant portion a consolidation pattern.
A break to the north (with volume) is typically the major sign that the pattern is active and will complete itself.
Hint: It is important to remember that there is no guarantee that every pattern will complete itself.
See below:
Assuming the price were to break upward to the north of this pennant and fulfill the pattern, then the target from this breakout would be +30%/$2.3k USD from the exit point (same size as the flagpole).
That would put the price at approximately $11.5k/$11.6k.
Balance of Power RSI
The BoP RSI for Bitcoin on the daily resolution shows consistently increasing buy pressure over time (see below):
MACD
The MACD is still questionable for Bitcoin on the daily resolution:
ZN Double Reversion Ribbon V2
Below is the double reversion ribbon:
We can see a bearish cross of the ribbon above, as well. There aren’t too many additional details apart from that, that can be discerned from the photo above (on the daily resolution).
Relative Strength Index
Below is the RSI(14) for Bitcoin on the daily resolution:
The RSI(14) looks very bullish on the daily resolution.
In terms of ‘weighing’ the RSI(14) vs. the other indicators (which are all ambivalent/bearish), the RSI(14) should be weighed heavily, in comparison.
Conclusion
Bitcoin on the daily seems to be indicating a propensity for some further consolidation before the price continues on its way upward.
Points/Recap :
1. There are some substantial points of underlying support provided by the EMA50/EMA200/EMA100; in order for the price to decrease substantially, significant bearish price action will be requisite
2. The significant price increase that Bitcoin experienced recently has flipped a lot of the general outlook for Bitcoin moving forward in the near future (vs. what it was prior; i.e., Bitcoin soaring past the EMA50 did a lot to change projections)
3. Fundamentals seem to be decoupled, to a large extent, from Bitcoin’s price action. Part of this is due to blatant misinformation (will be covered elsewhere), another part is due to apathy to outside information / pure speculative trading that seems to occur in a vacuum that is almost entirely unresponsive to ‘real world’ events
R/R :
Telegram = t.me/librehash
Twitter = twitter.com/librehash
Website = librehash.org
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Docs = docs.libreahsh.com
Twitter = twitter.com/librehash
Website = librehash.org
GIt = git.librehash.com
Docs = docs.libreahsh.com