TradingShot

BITCOIN Bears are winning with MA50. Can Bulls defend $6300?

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
First of all allow me to start off with wishing everyone a Happy New Year and a prosperous and profitable 2020 ahead!

Now, Bitcoin is just picking up right where we last left it. Consolidation, nothing more nothing less (see my previous BTC study on this accumulation at the end of this text). There certain criteria that will favor the Bull Case and other that will favor the Bear Case.

BEAR CASE
*The 1D MA50*

So far the short term seems to favor the sellers as BTC failed to cross above and was rejected on the 1D MA50 (blue trend line ). This rejection pattern has resulted in the past (the MA50 put significant sell pressure from mid-August to mid-September) into a new Lower Low on the Channel Down that started with the June 2019 High.

*The RSI*
Another parameter that is favorable to sellers is the RSI . Based on the late-September - late-October fractal it appears to have completed the 4th step which indicates a top. When the 4th step was made last October, it later resulted into a new Lower Low within the Channel Down.

*LMACD Bearish Crossover*
My favorite LMACD indicator also displays a pro-bear pattern as the lengths are about to make a bearish crossover.


BULL CASE
*The LMACD Bullish Divergence*

The LMACD may be on the sellers' side as far as the Bearish Crossover is concerned but on a more medium term perspective, it appears to be on a Bullish Divergence as despite the Lower Lows on the actual Channel Down, the LMACD is supported on a Higher Low trend line (yellow line) since early October. Another bounce on this trend line (thus a new Higher Low) can be very bullish on the longer term.

*The Support Triangle*
The mini Lower Low trend line (green bold line) along with the 6,425 low create a strong short term Support Triangle. If this green shaded area holds then this can be a strong short term case for buyers and the 1D MA50 may be re-tested, this time with stronger chances to break above.


Which factors do you think weigh more on Bitcoin at the moment? Do Bears have a stronger case with the MA50 and RSI or Bulls can turn it around with the LMACD in their pocket? Let me know in the comments section!

Please like, subscribe and share your ideas and charts with the community!



Latest study on the current accumulation/ consolidation phase:

I am now trading on the best and most trustful platform PRIME XBT!

REGISTER HERE --> https://primexbt.com?signup=139341

*Crypto, Forex,Indices, Commodities
*100x leverage
*5 order types
*Instant deposits
*Secure wallets
*0.05% trading fee on all assets
insightful
my opinion
btc was rejected by resistance again now the target 7.100 at least
+1 Reply
TradingShot David_Smith
@David_Smith, Thanks for sharing
+1 Reply
awesome chart)
+1 Reply
@Alex_Clay, Keep up the good work Alex. You are one of my favorite newcomers!
+1 Reply
+1 Reply
@Boon2, Looks like a good wave count Boon.
+1 Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar Shows How It Works Chart Features Pricing House Rules Pine Wizards Moderators Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Help Center Refer a friend Feature Request Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out