I think we need to pay close attention to what has developed since the 5th of February. Keep in mind, this is only on the micro level. It's not enough to call it just yet, but there does appear to be a clear declining channel on the 4-hour chart that is hard to write off as a possible trend change. But what has me taking this seriously is the fact that we had definite action on the Big Green 4.236 fib circle ring that we have previously seen a LOT of pivot action on. Here's what caught my attention today that I just noticed...
I always pay close attention to what the stochastic indicator tells us during a trend. The last 3 times that the stochastic has peaked above the 80% overbought boundary, the price has declined. This is something I take seriously. Whenever you get a declining "return" at the tops of the stochastic, it is indicative of a change in overall direction. Take a look at the points I have indicated in blue. At points 1, 2, and 3, the stochastic peaked out at a corresponding lower high each time. Point 3 gave us the lowest high of all, as we experienced the rejection right at the Big Green 4.236. It's not a "serious" decline overall, but it does have me patiently waiting to see what happens when we cross the 4.236 again in the coming days.
What are the possibilities, you ask? We could rebound and continue the bullish trend, or we could take a more significant dip and fall below the boundaries of the micro parallel trading channel that has formed since the 5th of February. If we fail that channel at the crossing, we could be headed towards the 8600 level where there is an unfilled CME gap from the past. Some believe that all CME gaps eventually must be filled, but it's not a 100% certainty. But there is enough evidence provided by the micro trend that this gap will fill before a continuance of the bullish trend.
Enough time has passed that I think there is certainly a possibility that the bull market will proceed after a dip to the CME gap. The longer this sideways movement continues, the closer I believe we are to the next major bull run. So we should be in for some definite exciting price action until this plays out. What are your thoughts on the overall strength of BTC considering this slight break in the bullish action? I'd love to hear your input!
Carlton Flowers
The CryptoPro
I always pay close attention to what the stochastic indicator tells us during a trend. The last 3 times that the stochastic has peaked above the 80% overbought boundary, the price has declined. This is something I take seriously. Whenever you get a declining "return" at the tops of the stochastic, it is indicative of a change in overall direction. Take a look at the points I have indicated in blue. At points 1, 2, and 3, the stochastic peaked out at a corresponding lower high each time. Point 3 gave us the lowest high of all, as we experienced the rejection right at the Big Green 4.236. It's not a "serious" decline overall, but it does have me patiently waiting to see what happens when we cross the 4.236 again in the coming days.
What are the possibilities, you ask? We could rebound and continue the bullish trend, or we could take a more significant dip and fall below the boundaries of the micro parallel trading channel that has formed since the 5th of February. If we fail that channel at the crossing, we could be headed towards the 8600 level where there is an unfilled CME gap from the past. Some believe that all CME gaps eventually must be filled, but it's not a 100% certainty. But there is enough evidence provided by the micro trend that this gap will fill before a continuance of the bullish trend.
Enough time has passed that I think there is certainly a possibility that the bull market will proceed after a dip to the CME gap. The longer this sideways movement continues, the closer I believe we are to the next major bull run. So we should be in for some definite exciting price action until this plays out. What are your thoughts on the overall strength of BTC considering this slight break in the bullish action? I'd love to hear your input!
Carlton Flowers
The CryptoPro