This is a bearish indicator and was seen in Feb 2018 on the BTC chart as the price of bitcoin plummeted from a $20,000 high; the noticeable pattern was also seen in the NASDAQ 100 on October 20 during the crash of the dotcom bubble. it is observed when the 50day MA crosses the 200 MA. Has buying momentum finally tapered off and will this downward movement in the market continue? Or will this be merely short-lived and the bulls take charge once-again. This signal is further confirmed using the MACD showing a trend reversal and increased trading volumes as more sellers cement their positions.
Well spotted and this further cements for me that the bull run is already over, that's how I am treating it anyway. We had a weekly close below the EMA 21, which always signals the end of the bull market anyway, imo - unless we get back above it before the end of this week, then it is definitely over.
MSS007_008
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@Hughesey80,
I’ve not sold any of my positions yet as this pullback may well have been amplified by the cascading liquidations on the futures market. Time will tell..
Felix000
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@MSS007_008, Cross not confirmed yet.
Here are the mechanics.
Only works if confirmed by a weekly close below weekly range when cross occurs vice versa.
Then look for entry e.g. "B".
Larger sample could reveal different stat results, and other strategies.
NOT ADVICE. DYOR.
Ryecatcher
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good spot
MSS007_008
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Cheers - it's a puzzling one as on-chain metrics have reset since the pull-back which is bullish for the long-term. Let's hope this indicator is invalidated shortly unless, of course, you're going short..