entertheroach

BTC update - On possibly the sexiest 1D chart of the evening ;-)

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Lets have a look at the BTC 1D chart using the Ichimoku Cloud with the 20,60,120,30 settings and a few other indicators and squiggly lines:


BTC is in the Bullish Zone of the Ichimoku Cloud for this 1D timeframe. BTC has closed 4 daily candles within the Bullish Zone for this 1D timeframe.

The Ichimoku Cloud Conversion Line (Tenkan Sen) is indicating that the mid point of the sort-term momentum is sideways.

The Ichimoku Cloud Base Line (Kijun Sen) is indicating that the mid point of the mid-term momentum is sideways.

The Ichimoku Cloud Lagging Span (Chikou Span) is indicating momentum is downwards at the moment. Note that the Lagging Span (Chikou Span) is still safely above the Price from 30 Periods ago.

Note that the gap between the Ichimoku Cloud Leading Span B (Senkou Span B) and Leading Span A (Senkou Span A) has shrunk so if BTC stays in the Bullish Zone, we may eventually get a cloud (Kumo) Twist into a new Bullish Green Cloud for this 1D Timeframe.

BTC is still above its Bollinger Bands Middle Band Basis 20 Period SMA for this 1D timeframe. Note that the Upper Band is moving downwards and the Lower Band is moving upwards indicating we may see some consolidation and a drop to the Middle Band Basis.

BTC found strong resistance and is below its Least Squares Moving Average ( LSMA ) level. A candle close below the LSMA is a possible SELL signal for traders who use this indicator. A candle close above the LSMA is a BUY signal.

Note that BTC is still above its 50EMA for this 1D timeframe and now is quite a distance safely away from it.

BTC is above its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range i have selected.

BTC is still above its Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range.

Note that volume has increased but the volume Bars are still under its Volume 20 Period Moving Average.

I have added a few potential support zone areas just incase BTC shits the bed ;-). I could add more but didn’t want to make this chart to messy ;-). I have also added a Zone where BTC has found repeated resistance, so a close above this level is crucial for continued upwards momentum.

The Average Directional Index ( ADX DI) is indicating the trend straight has dropped slightly with the ADX (Orange Line) at 37.42 but still above its 9 Period EMA (Black Line) which is at 36.71. The +DI (Green Line) has dropped to 27.02 and the -DI (Red Line) has risen to 13.70. This is indicating a decrease in Positive Momentum and an increase in Negative Momentum. Note that the +DI (fGreen line) is still above the -DI (Red Line). If the ADX (Orange Line) crosses back under the 9 Period EMA (Black line) then this could lead to a further drop on this 1D timeframe. On the plus side, we still do have some distance separating the +DI (Green Line) and -DI (Red Line) which is a good thing.


The Relative Strength Index ( RSI ) is indicating momentum is downwards at the moment. Note that the RSI (Purple Line) is below its 9 Period EMA (Red Line) which is a sign of strength for downwards momentum. On the plus side, the RSI is a fast reacting indicator so it does mean that BTC still has room to move up before becoming Overbought on this 1D timeframe.

A very good sign will be if BTC closes this daily candle above the Leading Span B (Senkou Span B) cloud support in the Bullish Zone. A close below the Leading Span B (Senkou Span B) cloud support in the Equilibrium Zone will most likely lead to further drops to the below support zones, so it’s crucial for BTC to stay above and more importantly CLOSE ABOVE this level. Full Bullish Confirmation for this 1D timeframe will be when the Leading Span A (Senkou Span A) crosses back above the Leading Span B (Senkou Span B) level creating a Cloud (Kumo) Twist into new Bullish Green Cloud for this 1D timeframe.

Again my post are not price prediction post but more educational about what BTC has above and below it & hopefully this post has explained what the various indicator that i have used are actually indicating.

I hope this is helpful with your trading and hodl-ing.
Comment: The Ichimoku Cloud Leading Span B (Senkou Span B) cloud support and Conversion Line (Tenkan Sen) are both holding strong on this 1D timeframe. Keep an eye out for a daily candle close back ABOVE the Bollinger Bands Middle Band Basis 20 Period SMA.