Hi friends!
Scary things are happening to bitcoin. We not just broke the 200 MA, but we are also about to break the almost 1 year Bullish trendline. Yes as you can see it is on the log chart. Since I am a new technical analyst, I have thirst for knowledge and want to learn as much at is possible. In the book named: Alan Farley - The Master Swing Trader, I read that on volatile stocks (it also true with cryptocurrencys) it is better to use log chart in order to get more reliable informations.
As you can see on the log chart we failed to breake the mid-term (red) bearish trendline. But if you have a look at the normal chart (not log) we broke the mid-term (red) bearish trendline relatively long time ago.
So as you can see it really gives a much more reliable insight to the price movement. When we hit the bearish trendline on the log chart we bounced back more significantly compared to the normal chart. Both price dropping and volatility were greater compared to the normal chart bounce.
If we successfully break this GREEN 1 year old bullish trendline and we close below this on the daily chart today and tomorrow it is likely to keep falling to the next major support at out previous 6k low.
We have also a cross on the weekly Stoch RSI which is a bearish sign.
It is gonna take time to reach that target support. Of course we have intermediate supports, but in one or two weeks it is likely to get there.
If you have any question or you diagree with something, please do me a favour and leave a comment below!:) If you found this analysis helpful, please leave a like!:)
***It is not a financial advice! I do not tell anyone to buy or sell bitcoin!***
Scary things are happening to bitcoin. We not just broke the 200 MA, but we are also about to break the almost 1 year Bullish trendline. Yes as you can see it is on the log chart. Since I am a new technical analyst, I have thirst for knowledge and want to learn as much at is possible. In the book named: Alan Farley - The Master Swing Trader, I read that on volatile stocks (it also true with cryptocurrencys) it is better to use log chart in order to get more reliable informations.
As you can see on the log chart we failed to breake the mid-term (red) bearish trendline. But if you have a look at the normal chart (not log) we broke the mid-term (red) bearish trendline relatively long time ago.
So as you can see it really gives a much more reliable insight to the price movement. When we hit the bearish trendline on the log chart we bounced back more significantly compared to the normal chart. Both price dropping and volatility were greater compared to the normal chart bounce.
If we successfully break this GREEN 1 year old bullish trendline and we close below this on the daily chart today and tomorrow it is likely to keep falling to the next major support at out previous 6k low.
We have also a cross on the weekly Stoch RSI which is a bearish sign.
It is gonna take time to reach that target support. Of course we have intermediate supports, but in one or two weeks it is likely to get there.
If you have any question or you diagree with something, please do me a favour and leave a comment below!:) If you found this analysis helpful, please leave a like!:)
***It is not a financial advice! I do not tell anyone to buy or sell bitcoin!***