In the previous post, I talked about possible buy opportunities based on the reversal from the support zone at 8000.00 level. Find this post with more details in the related ideas. This time, let's look at the market using the higher timeframe - the weekly chart.
This chart can explain why the market doesn't want to move lower.
The price reached a strong support line, which is SMA with period 100. In the past, this line acted as a solid trend line and was starting points for new price movements. This time we can have the same setup, even if we talk about short and medium term movements.
The price bounces from SMA100 and moves upward to the downtrend line. Do we have other signals supporting the upward movement? Based on the weekly chart - we have nothing. RSI is between zones at 50 level. MACD lines and histogram support the further falling. DMI is bullish and confirms trend market conditions. But at the same time, ADX line falls and it is a signal that buyers are not strong now. It's a good example of a correction period in a trend market.
The price action at 8000.00 still is very important for the market. We don't have the fixed weekly candle yet. We should be ready to see any movements. For example, the market will break the support, and it will give us a strong bearish candle. If so, the market can move to 6000.00 very quickly. If we get a bullish candle, it will become a first signal telling us about the upward movement based on the weekly chart.
How to trade? You still can follow the ideas from my previous post. Lower timeframes also will be good for buying for short and medium term. If we talk about the weekly chart, it will be batter to wait for a reversal signal and buy based on it. Will it be from 8000.00 or 6000.00, we will see!
P.S. If you want to get my ideas for other markets, please write them in comments. I will write market overviews for the most liked coins, currencies, commodities, and stocks. Also, I will be glad to read your opinions about Bitcoin. Thanks for your interest!
This chart can explain why the market doesn't want to move lower.
The price reached a strong support line, which is SMA with period 100. In the past, this line acted as a solid trend line and was starting points for new price movements. This time we can have the same setup, even if we talk about short and medium term movements.
The price bounces from SMA100 and moves upward to the downtrend line. Do we have other signals supporting the upward movement? Based on the weekly chart - we have nothing. RSI is between zones at 50 level. MACD lines and histogram support the further falling. DMI is bullish and confirms trend market conditions. But at the same time, ADX line falls and it is a signal that buyers are not strong now. It's a good example of a correction period in a trend market.
The price action at 8000.00 still is very important for the market. We don't have the fixed weekly candle yet. We should be ready to see any movements. For example, the market will break the support, and it will give us a strong bearish candle. If so, the market can move to 6000.00 very quickly. If we get a bullish candle, it will become a first signal telling us about the upward movement based on the weekly chart.
How to trade? You still can follow the ideas from my previous post. Lower timeframes also will be good for buying for short and medium term. If we talk about the weekly chart, it will be batter to wait for a reversal signal and buy based on it. Will it be from 8000.00 or 6000.00, we will see!
P.S. If you want to get my ideas for other markets, please write them in comments. I will write market overviews for the most liked coins, currencies, commodities, and stocks. Also, I will be glad to read your opinions about Bitcoin. Thanks for your interest!
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