If you're buying bitcoin today, you probably haven't been trading long, or you're just not paying attention.
So far BTC has punched through a lot of previous resistances with force, and it was strong, but it's starting to look very tired. I am not shorting or longing here, I have long hodls though, but I am not interested in messing too much with those. BTC is still in a position of extreme uncertainty.
One indicator that I've noticed performs great on BTC is overlaying MFI and RSI. It's something I actually haven't seen discussed before so I'll run down my findings here. I've been using this roughly half a year now.
I overlay MFI to RSI because they are closely linked, with MFI essentially volume weighted RSI. If the MFI produces a large gap above RSI, it shows that the volume is larger than usual during this movement. Generally this confirms the overbought sentiment, sort of like a super-RSI, and these conditions cannot last as not only is the price velocity unsustainable, so is the volume velocity.
If you check the chart in overbought conditions, if the MFI is drastically higher, the chances of a dump after are high. Whereas when MFI and RSI roughly agree (are close together during the peaks) we tend to have more room to move and RSI can show conditions that fail.
We could see BTC blast through on fundamentals, but the charts are showing a very overbought picture. Personally I am not buying here, just look at the past - and everyone is FOMOing, we've been through this so many times and every time those people end up rekt. Know your shapes, patterns and market cycles.
Thanks for your suggestion using the MFI+RSI as an idicator.
Check out the weekly though.
For me it looks like its building bullish momentum.
Having the crossover on the MACD.
But we know btc. It's just doing what it wants. Sometimes the best TA is nothing but a fairytale.
Expect the unexpected.
deathdisco
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@Juba1337, exactly. I know there's a few bullish indicators right now but look at past behavior, bitcoin always does the most annoying thing possible. The only thing it seems to obey is repeating chart price formations.
I think people would be mad to buy in right now. We're about $500-$600 away from a clear cut breakout or rejection.
Check out the weekly though.
For me it looks like its building bullish momentum.
Having the crossover on the MACD.
But we know btc. It's just doing what it wants. Sometimes the best TA is nothing but a fairytale.
Expect the unexpected.