Alright folks, first analysis I've made public but I've had a number of followers on other platforms request that I publish my analyses.
I know theres ALOT going on here, but the reality is that there are a huge number of historical support/resistance points converging over the next day or two.
First off, I want to note that I personally believe we are in an ABC corrective wave pulling out of the Elliot impulse move down that began back in December, NOT a new bullish trend quite yet. If this is the case, the green long term support could theoretically act as our bottom C point of said correction, if we do see a turn here and
BTCUSD
rallies above the overhead purple resistance I will be bullish again, with confirmation after the first pullback above this resistance.
I've laid out three possible paths I see occurring, with 2 being the most likely in my opinion. With so many converging support and resistance areas we may be in for a bumpy ride until we pass this zone around the tail end of February.
As for the next two days, they will be absolutely crucial. On the bright side though, signs look at worst neutral and lean towards promising.
We can see that although the MACD did take a bit of a dive, it has formed a strong higher swing low; paired with volume that has held relatively static things are looking up.
Also, on the dual Stochastic/Stochastic RSI oscillator (proprietary code) we can see that although the stochastic is cresting, the stochastic RSI is still strongly bullish; and both are over ~40. While this is far from a truism, historically a bullish STOCHRSI with subpeaking STOCH is often seen in less impulsive uptrends.
Last but not least we have our 48(green)/192(red) EMA's (I have found that when analyzing 4 hour charts this ratio provides a much smoother analysis than the traditional 50/200). While price has dropped below the 192 EMA, I wont be concerened so long as we stay above the long term support. Over the next 8-24 hours the 48 and 192 averages will converge, and the subsequent bounce (what we want!) or crossover will be very telling for the near future of
BTCUSD
.
*** Note that the MACD RSI crossover strategy I've written has the RSI hidden, and that the earning results are irrelevant as it used for cleaning up major trends NOT buys and sells.
Remember, TA is neither investment advice nor a guaranteed result, but rather an informed prediction of historical and emerging patterns.
Good luck and happy trading!
Austin Doyle
CTO
Crypto Playhouse
I know theres ALOT going on here, but the reality is that there are a huge number of historical support/resistance points converging over the next day or two.
First off, I want to note that I personally believe we are in an ABC corrective wave pulling out of the Elliot impulse move down that began back in December, NOT a new bullish trend quite yet. If this is the case, the green long term support could theoretically act as our bottom C point of said correction, if we do see a turn here and
BTCUSD
rallies above the overhead purple resistance I will be bullish again, with confirmation after the first pullback above this resistance. I've laid out three possible paths I see occurring, with 2 being the most likely in my opinion. With so many converging support and resistance areas we may be in for a bumpy ride until we pass this zone around the tail end of February.
As for the next two days, they will be absolutely crucial. On the bright side though, signs look at worst neutral and lean towards promising.
We can see that although the MACD did take a bit of a dive, it has formed a strong higher swing low; paired with volume that has held relatively static things are looking up.
Also, on the dual Stochastic/Stochastic RSI oscillator (proprietary code) we can see that although the stochastic is cresting, the stochastic RSI is still strongly bullish; and both are over ~40. While this is far from a truism, historically a bullish STOCHRSI with subpeaking STOCH is often seen in less impulsive uptrends.
Last but not least we have our 48(green)/192(red) EMA's (I have found that when analyzing 4 hour charts this ratio provides a much smoother analysis than the traditional 50/200). While price has dropped below the 192 EMA, I wont be concerened so long as we stay above the long term support. Over the next 8-24 hours the 48 and 192 averages will converge, and the subsequent bounce (what we want!) or crossover will be very telling for the near future of
BTCUSD
. *** Note that the MACD RSI crossover strategy I've written has the RSI hidden, and that the earning results are irrelevant as it used for cleaning up major trends NOT buys and sells.
Remember, TA is neither investment advice nor a guaranteed result, but rather an informed prediction of historical and emerging patterns.
Good luck and happy trading!
Austin Doyle
CTO
Crypto Playhouse