These are only my thoughts so DYOR before entering a position. I have been using this to trade XBT for the last few weeks since we originally tested the magical $5850 number.
BTC broke every macro downtrend from our ATH and has shown the potential for a true double bottom:
1. Prior trend has been broken
2. First Trough broke lowest price in trend
3. We have had 3 Peaks now and this has shown before to the magic number for BTC to break its' macro downtrend.
4. The Second Trough was textbook. For a valid trough you are looking to be within 3% of the first trough.
5. There was a good amount of volume on the Advance Trough (I would like to have seen more - but look at the volume breakout similarity from the last bear market).
6. We broke out ATH Resistance (although there wasn't ascending volume).
(Currently we are here)
7. Resistance has turned support and it is normal to test it here. This is a good time to get a second chance to close a short position or initiate a long.
8. We are now waiting for our price target. I see $6,800 being our new found support before we move sideways for a while. It will be our third time trying to break it and would be a real confidence boost to BTC.
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Daily StochRSI is bottoming out and I am seeing some hidden divergence. We are seeing higher lows for price and lower lows for Stoch - this is common when we are retracing an uptrend. We could see RSI pulled a little lower than we are now and maybe touch the $5,850 mark but I really don't see that breaking for psychological reasons. I am stacking longs at the blue and green boxes.
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I also would like to see us break $6,800 before we get too close to the Ichi Clouds. I also believe that breaking $6,800 before coming in contact with them will allow us to find support easier at this level. I am using 20/60/120/30 to present a 24/7 live market better.
BTC broke every macro downtrend from our ATH and has shown the potential for a true double bottom:
1. Prior trend has been broken
2. First Trough broke lowest price in trend
3. We have had 3 Peaks now and this has shown before to the magic number for BTC to break its' macro downtrend.
4. The Second Trough was textbook. For a valid trough you are looking to be within 3% of the first trough.
5. There was a good amount of volume on the Advance Trough (I would like to have seen more - but look at the volume breakout similarity from the last bear market).
6. We broke out ATH Resistance (although there wasn't ascending volume).
(Currently we are here)
7. Resistance has turned support and it is normal to test it here. This is a good time to get a second chance to close a short position or initiate a long.
8. We are now waiting for our price target. I see $6,800 being our new found support before we move sideways for a while. It will be our third time trying to break it and would be a real confidence boost to BTC.
________________
Daily StochRSI is bottoming out and I am seeing some hidden divergence. We are seeing higher lows for price and lower lows for Stoch - this is common when we are retracing an uptrend. We could see RSI pulled a little lower than we are now and maybe touch the $5,850 mark but I really don't see that breaking for psychological reasons. I am stacking longs at the blue and green boxes.
________________
I also would like to see us break $6,800 before we get too close to the Ichi Clouds. I also believe that breaking $6,800 before coming in contact with them will allow us to find support easier at this level. I am using 20/60/120/30 to present a 24/7 live market better.