** Before we start, please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
** The Sequence **
As seen on the chart, the trading pattern since the May 07 High resembles that of March 20 to April 23, which eventually resulted in a significant break-out. Just as then, the current set-up is also on Higher Highs and Higher Lows. The duration of Sequence 1 was just over 1 month, Sequence 2 has already completed 1 month, so a big move is likely to take place.
** The MA20/50 Cross **
In order for that to happen, the Cross of MA20 below the MA50 (on the 1D chart) has to be avoided. The reason is because last time that Cross took place (March 05 ), Bitcoin didn't see a new High and collapses around -60%. Of course this was very much fueled by the stock market crash (related to the COVID outbreak), so the effects of this MA20/50 Cross may have not been so devastating on any other occasion, but I have to highlight it regardless. Unfortunately, BTC is close to forming this Cross in the next week if it doesn't sustain the Higher Lows sequence.
** The **
On the bright side, the that led (and followed) that last MA20/50 Cross in March ( 1), seems to be different from the current sequence ( 2). The current one appears to be diverging from the downtrend and is turning sideways to say the least. If it breaks above its June 01 High, we have a confirmed divergence, and most likely we avoid the scenario of a bigger drop as in early March.
Which formation do you think will prevail? The Sequence of March 20-April 23 or the Sequence of the MA20/50 Cross? Feel free to share your work and let me know in the comments section!
Please like, subscribe and share your ideas and charts with the community!
-20% monthly profit on +10000 USD accounts. Max 30% drawdown.
-Message me for more info!
I trade on the best platform PRIME XBT!
REGISTER HERE --> https://primexbt.com?signup=139341