I haven't done one of these charts for crypto in a long time but its time to do one again.
Now this chart is a trend following chart, so with that logic this will be the focus:
- Identifying trends
- Why a trend is a trend
- When a trend forms
- how a trend forms
- as much data as possible
- trend progression
- killing noise
The chart has been set out to show the support and resistances, of former trends, progression and trend relation.
the interesting part of the chart is that there have been clear trends, and signs of trends reversing or forming. The yellow circles indicating the price dropping below the support of the 30 MA which has been a during trends since the beginning of BTC . The indicates that trends usually get started when progresses and spikes, is a story with the relative vs the absolute in terms of liquidity but for this chart we will mostly ignore that factor. the MA 50 is useful for death crosses and golden crosses on the chart to confirm new trends. Momentum of the RSI agrees with the price cross overs on the 30 MA which strengthens its trend identifying capabilities. last indication we had was a RSI divergence during the rise of up trend 2, something to watch for in the future.
A reminder of trends, trying to catch one before it has properly formed has the risk of getting whipsawed, that is a common risk of trading trends.
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The price of BTC has been a mixed bag of signals lately and to sum it up it has a bullish bias because of the bullish trend but the resistance is staying the same since 9.8K but we haven't made any lower lows. Expect the price to move violently when a lower low is made and get your parameters for position closing ready.
TLDR; Overal it is a mixed bag of signals with a bullish trend.
Using a new indicator for trend detection:
Nothing much to note, pretty standard TA, we haven't found the current trends support but we have a 2 touch points trend resistance line, suggest you keep an eye on that.
This channel is interesting as the triangle intersects with it quite nicely and we are still bearish 8.2K break + Bearish TK cross is what I'm watching for now.