MRudy

Bitcoin needs to breakout from the Monthly 21 EMA

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
- Bitcoin finally broke out of the Ascending Triangle , thus negating my theory of a continuation pattern.
- The rally smashed through the 200 Day Moving Average, and is currently trading above it.

Here is what is interesting to me:

The rally actually stopped at the Monthly 21 EMA . It is a very important long term level in my book, because of how the price behaves with it. You can see how Bitcoin used it as support for 5 months during 2018 before finally breaking down from it in November. The more a level is tested, the weaker it becomes.

For a few months the price consolidated in a triangle before breaking upwards just recently.

In 2015, after the Major Bitcoin low, there was a rally that actually resembles what could be happening right now. After a period of low volatility , it made a sudden surge all the way to the 21 Monthly EMA , then dropped quite significantly. After that, Bitcoin rallied back up and finally broke up from that EMA , thus ending the bear market.

For me, if bitcoin manages to smash through the Monthly 21 EMA , and successfully retest it as support, the bear market is over.
Apr 03
Comment: Bitcoin is about to retest the EMA.

Apr 03
Comment: Divergence on the 1H, 2H, and 4H RSI, coupled with the Monthly EMA as resistance increase the chances of a dump.

Apr 03
Comment: Also valid for the Weekly SMMA 50. Support for a good portion of 2018, and now potentially strong resistance.

Apr 16
Comment: EMA still acting as resistance.

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