Hi everyone! Just wanted to give you a quick update on what's going on with Bitcoin. I meant to post this yesterday but never got the chance to get on my computer.
Anyways, what I've been noticing over the last week are some big bullish divergences showing up. Take a look at the RSI, CMF, CCI, and MACD. All of them are showing bullish divergences on the 4 hour time frame, and some are visible on the 6hr time frames as well. That's why I decided to buy in around 6,250 and plan on holding as long as we see momentum keep up.
Just a few hours ago we got a nice breakout from the descending trendline that has been acting as resistance over the past week. If we see the price start coming back down, a good point to buy in would be at the re-test of that black trendline.
For now I'd like to see the price stay above this trend line, and break the 0.618 fib level with some volume to confirm another bull rally starting.
Another bullish sign is the price staying above the 89EMA on the weekly time frame. This moving average just cannot seem to be broken every time the price falls back towards the 6k prices.
Take a look below:
I do not have concrete targets right now for this long position, but my best guess would be around 7,100 where the top of the broader wedge lies. Price will have to first break the tough resistance at 6,800 however so keep your eye on this level before looking further ahead.
Anyways, what I've been noticing over the last week are some big bullish divergences showing up. Take a look at the RSI, CMF, CCI, and MACD. All of them are showing bullish divergences on the 4 hour time frame, and some are visible on the 6hr time frames as well. That's why I decided to buy in around 6,250 and plan on holding as long as we see momentum keep up.
Just a few hours ago we got a nice breakout from the descending trendline that has been acting as resistance over the past week. If we see the price start coming back down, a good point to buy in would be at the re-test of that black trendline.
For now I'd like to see the price stay above this trend line, and break the 0.618 fib level with some volume to confirm another bull rally starting.
Another bullish sign is the price staying above the 89EMA on the weekly time frame. This moving average just cannot seem to be broken every time the price falls back towards the 6k prices.
Take a look below:
I do not have concrete targets right now for this long position, but my best guess would be around 7,100 where the top of the broader wedge lies. Price will have to first break the tough resistance at 6,800 however so keep your eye on this level before looking further ahead.
Comment:
Price has been finding resistance at the 89EMA on the 4hr over the last couple of days. Need to see this break to keep up bullish momentum otherwise another big drop is likely. Things are still very bullish on the med-term and even if we drop back down towards the 6k levels we can still see those bullish divergences hold on the higher time frames. This rally could just take a little while to get going, similar to the beginning of the last rally.
Comment:
Sorry for the late update, been so busy the last few days! So the 89EMA obviously held strong and the price swiftly dropped from there. I decided to exit my long position after the 3rd failed attempt to break the 89EMA. Now we see the price found support at the previous support around 6,200 and took off a little bit earlier today. But now it looks like the 50MA is acting as resistance on the 4hour and even though there was some decent volume earlier, the bulls are struggling to keep up momentum.
Shorts are still at very high levels and so I don't want to rule out the possibility for a short squeeze to pump the price up. The CMF also still looks very bullish on the 4 hour time frame, even after that drop yesterday.
For now I think it would be best to wait this out until we have clearer signals and not get trapped into a bad position.
Shorts are still at very high levels and so I don't want to rule out the possibility for a short squeeze to pump the price up. The CMF also still looks very bullish on the 4 hour time frame, even after that drop yesterday.
For now I think it would be best to wait this out until we have clearer signals and not get trapped into a bad position.