CerealTrader

Bitcoin - Stuck in a channel between McGinley Dynamic and 200EMA

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
After repetitive attempts to rise upwards through the 200EMA, BTC is now using the (2017) 0.382 Fibonacci green zone as support which strengthening by aligning with the (Current) 0.236 Fibonacci and the McGinley Dynamic, A persistent strong price level that always shown to be quite resilient in the previous attempts.
The McGinley Dynamic has proven to be useful in the current trading environment as to avoid spikes in volatility/price separation while also becoming a "layer" of support which Buy Positions are obviously placed behind (last two breaks have been rebounded sharply with volume ).
Knowing that, places BTC within a channel support of the McGinley Dynamic (no one wants their $$$ doing the hard work to break through support/resistance's lined with buy points) and the consistent resistance of the 200EMA (No catalyst to sustain price above this level), so we have a stalemate, at least for the time being. Aggressive trading may change that.

What the above graph shows is that traders are primary using the Daily, Fibonacci and EMA for long term direction, McGinley Dynamic for Buy Positions along with MACD , RSI for trend and volume along with the Ichimoku Cloud , in which Senkou B rejects any entry, quite strongly to be precise.

If your looking for entry/exit points, either side of these indicators (McGinley/200EMA) would be great place to start, but usually in times of indecision... where the Lion's in play, watching is safer then playing.

Will keep updating in regards to the exit of this channel, in which could provide possible future direction, as a break in either indicator will effect a significant shift in the overall trend direction.

CerealTrader


BTC is seeing some tough times , so I should write this:
***Education Purposes only***

Mar 26
Comment:
Analysing this channel for a possible exit...not downwards
Can see price consolidation within the current channel of Mcginley Dynamic and 200EMA as volume is now at lowest level since $6000 although becoming reactive at any chance of trend reversal, good sign, showing trader's hunting for a bottom. It seems likely volume will continue to be a issue during future resistance levels, as they say "volume goes with the trend" so without volume we are going nowhere.
.......how do you get volume without volume, still researching this question.

RSI - holding steady around 40, definitely can be seen as undersold with room to rise but without volume it may have to retrace slightly downward under 30 or align with another indicator for this to be beneficial.
StochRSI - Bearish, oversold and heading downwards, will add pressure to increase time span before Elliott (ABC) commences.
MACD - Bearish, waiting for lead up with entanglement on the cross-over.

The end of the Elliott Wave (12345) price dip could lead to a increase of volume, if this happens, it could result in an initial RSI dip making undersold a viable trade.
What would make the Elliott Correction Wave (ABC) attractive is if BTC price rebounds back into the Green upward channel (created from current price stagnation and current Fibonacci Retracement) & above the McGinley Dynamic (which would become support) This would likely see slight trend correction which will again face resistance at 0.786 Fibonacci & then 200EMA (B & C).
Being that BTC is currently holding the 0.50 Fibonacci level which is converging with McGinley Dynamic, sideways movement from this point may break down the future Elliot wave (ABC)
Side Note: With Volume so low and CME Futures at record Contracts (Open Interest is low, but this could be seen as reason while price has lost volatility.
http://www.cmegroup.com/trading/equity-i...

CerealTrader


BTC is seeing some tough times , so I should write this:
***Education Purposes only***
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