Hello, my beloved friends! Welcome to this update analysis, on BTC. Let's jump right in. Looking at the four hour chart, we can see that after dipping below the bottom of the downtrend channel, BTC almost touched my downside target, but it was stopped just above, around $6,000. Then, the buyers rushed in, with strong volume, pushing BTC back up inside the downtrend channel. One thing I want to note here, is the volume. You can see that at the bottom of the last bear flag, the green volume was very high. Again, during today's bounce, the green volume is extremely high. This is showing us that the bulls are showing up in force, and they're trying to form a bottom here.
And now, my fellow crypto lovers, I'd like to draw your attention to the star of this analysis — the MACD! As you can see, the MACD has formed three low troughs. However, each low trough has been higher than the last. BTC, on the other hand, has continued to trend lower. This is a massive bullish divergence, and a possible clue to a major reversal. With that said, like all analysis, it is conditional. We need to watch the MACD, and the price action closely. Specifically, we don't want to see the MACD break the rising green dotted support level, and we definitely don't want to see it make a lower low. People have been pressuring me to produce a reversal signal, and this is something that could POTENTIALLY be a signal of a bottom forming. Keep in mind though, if the bullish divergence is broken, it would be negated as a potential reversal signal. We can see that a bullish crossover is impending on the MACD, confirming the return of the buy-side pressure. Additionally, many of my downside targets
In summary, the bulls are posting some strong recovery volume, as they fight for control of the market. There is a massive bullish divergence on the MACD. There is a bullish crossover on the MACD. The bulls have pushed BTC back into the downtrend channel, and BTC has practically made a full correction to my downside target.
In a stark contrast, the cryptocurrency market capitalization chart tells another story. There is no denying, that it looks like a bubble that has just ruptured, and is in the midst of complete implosion. The bottom of THAT chart, appears to be miles lower.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
And now, my fellow crypto lovers, I'd like to draw your attention to the star of this analysis — the MACD! As you can see, the MACD has formed three low troughs. However, each low trough has been higher than the last. BTC, on the other hand, has continued to trend lower. This is a massive bullish divergence, and a possible clue to a major reversal. With that said, like all analysis, it is conditional. We need to watch the MACD, and the price action closely. Specifically, we don't want to see the MACD break the rising green dotted support level, and we definitely don't want to see it make a lower low. People have been pressuring me to produce a reversal signal, and this is something that could POTENTIALLY be a signal of a bottom forming. Keep in mind though, if the bullish divergence is broken, it would be negated as a potential reversal signal. We can see that a bullish crossover is impending on the MACD, confirming the return of the buy-side pressure. Additionally, many of my downside targets
In summary, the bulls are posting some strong recovery volume, as they fight for control of the market. There is a massive bullish divergence on the MACD. There is a bullish crossover on the MACD. The bulls have pushed BTC back into the downtrend channel, and BTC has practically made a full correction to my downside target.
In a stark contrast, the cryptocurrency market capitalization chart tells another story. There is no denying, that it looks like a bubble that has just ruptured, and is in the midst of complete implosion. The bottom of THAT chart, appears to be miles lower.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-