Here we are looking at Bitcoin (BTCUSD) on the weekly timeframe... Let's take a closer look at what happens next!
Prices for BTCUSD are now trading below EMA10, which is the first barrier/support. This signal is only confirmed once the weekly candle closes below $8999 (EMA10 /Green line).
With EMA10 breaking down, the next support is sitting at $8247 or EMA50, which is the magenta line just below the price on the chart.
Now, when a level is tested as support there is normally a pullback (green arrow). So BTCUSD can bounce. If the bounce produces a higher low, then BTCUSD will resume the drop while aiming for EMA100 or $7900... Depending on how this level is handled we can continue with the next step.
Another indicator/support level of interest on this chart is MA200.
This level was conquered back in late December 2018 (marked light blue). This bounce led to a lower high in late June 2019 compared to the high (ATH) hit on Dec. '17.
Since a lower high was printed after MA200 was tested as support, prices are very likely to go back down and test this level again. If BTCUSD isn't going to test this level, then the peak from June 2019 should be taken out soon. If this doesn't happen, we are going to drop some more.
The trading volume is still low... A sudden and strong drop can happen anytime. (Note: Prices can also as easily reverse and a big green candle show up, but the signals are bearish so our focus is on the drop).
If prices for Bitcoin (BTCUSD) starts to move back up with good strength, don't go FULL BULL mode until the June 2019 peak ($13880) is taken away.
EMA200 hasn't been tested as support either and the same scenario that works for MA200 is active here... Prices for altcoins/crypto, always tend to gravitate towards the EMA lines... Right now, we have prices being pulled towards EMA100, EMA200, and MA200 which is sitting at $5441...
I disagree with this idea. You have it going below the long term log trendline. My guess is as good as (or worse than lol) anyone else's but that trend has been in place since 2011 and this would violate the trend.
AlanSantana
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@upthedownstairs, That's just one signal...
XE13ST00P
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There's only two points of contact on the top trendline of your broadening descending wedge, is that moving the goalposts considering we had a clear break of the multiple contact trendline back in January? Seems like everyone's getting into emotion rather than technicals
XE13ST00P
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@XE13ST00P, The inverse would actually have more points of contact
Curious, what year did you start charting bitcoin? I’ve been around since 2012 and there are fundamentals at play here that don’t exist in any other asset in the world.
Your arguments that we need to test the W200 again since we didn’t break ATHs in 2019 is not represented by history. I have no idea why you think that is important. Meanwhile price action is very similar to 2012 and 2016 pre halvening.