Is Bitcoin crashing? Not based on our trend analysis indicator
It is normal to panic when prices drop but it's always a good thing to analyze the entire chart and see if there is indeed a valid reason to be panicking.
Our ZTrend indicator is really good for evaluating direction and strength. It is based on moving averages and standard deviations. In the chart above we have it setup from top to bottom with the following periods (20, 50, 100 & 253) This arrangement provides a clear image for short, medium and long term analysis.
ZTrend(20) gives you good entry and exit signals for short term. Yes it does look bearish but is it really bearish or more like opportunity to entry Long position for Trend continuation? Well the answer of that question relies on what the other 3 period indicators are showing.
ZTrend(50) became bullish on October 15th 2020 and hasn't stopped once since. Price has remained above the 50 period moving average the entire time. What does that tell you? Price is trending upwards.
ZTrend(100) became bullish on June 2020. It stopped being bullish but still bull in the beginning of October and has remained bullish ever since with prices breaking out 1-2 deviations several times.
ZTrend(253) perhaps the most reliable period for long term analysis. Went bullish in August 2020 and has not looked back. Not even once it has dip below the upper level of the oscillator.
Overall we see a bullish trend on #Bitcoin with a very healthy price consolidation towards the end of each month. Keep an eye on the 50 period Moving Average, that middle line you see between the Bollinger bands. Don't panic if price breaks that support. 1-2 deviations below the average is still a healthy consolidation. If it breaks below the lower Bollinger band than thats a different story. If you want to play your entries safe, wait for price to close above the 20 MA with a stop loss at 1 deviation below it.
If you like to know more about our ZTrend Indicator there is a related link below.
Our ZTrend indicator is really good for evaluating direction and strength. It is based on moving averages and standard deviations. In the chart above we have it setup from top to bottom with the following periods (20, 50, 100 & 253) This arrangement provides a clear image for short, medium and long term analysis.
ZTrend(20) gives you good entry and exit signals for short term. Yes it does look bearish but is it really bearish or more like opportunity to entry Long position for Trend continuation? Well the answer of that question relies on what the other 3 period indicators are showing.
ZTrend(50) became bullish on October 15th 2020 and hasn't stopped once since. Price has remained above the 50 period moving average the entire time. What does that tell you? Price is trending upwards.
ZTrend(100) became bullish on June 2020. It stopped being bullish but still bull in the beginning of October and has remained bullish ever since with prices breaking out 1-2 deviations several times.
ZTrend(253) perhaps the most reliable period for long term analysis. Went bullish in August 2020 and has not looked back. Not even once it has dip below the upper level of the oscillator.
Overall we see a bullish trend on #Bitcoin with a very healthy price consolidation towards the end of each month. Keep an eye on the 50 period Moving Average, that middle line you see between the Bollinger bands. Don't panic if price breaks that support. 1-2 deviations below the average is still a healthy consolidation. If it breaks below the lower Bollinger band than thats a different story. If you want to play your entries safe, wait for price to close above the 20 MA with a stop loss at 1 deviation below it.
If you like to know more about our ZTrend Indicator there is a related link below.
