Take this chart for example. I indicated what I thought would happen in BTC , based on the arrows that I drew. However, I also told you that once BTC returns to the 50 (in black,) we have to see a hold there or the market could be in for a serious decline. That's still true today, even though I have a green arrow rising off of the 50 . That's not showing what I think will definitely most certainly absolutely unequivocally happen. It's simply a display of what I expect to happen, IF IF IF IF IF BTC holds support around the 50 or the rising purple . Notice, the "if" statement. That's called a "condition." In case you didn't know, conditions are what ALL is based on. If you have a problem with conditions, or fail to recognize them in an analysis, then you have a problem with in general. If that's the case, then why are you here?
So, what I am most interested in, is seeing if BTC can hold the 50 . Just below that, we have the rising purple support line. So, if BTC falls below those levels, I expect that we could see a rapid fall to the 7,000 level. However, there is a chance that BTC can hold the 50 , and/or the rising purple . So, if we hold around that area and start to head higher, we could have a technical setup to produce a powerful rally toward 13,800.
Looking at the indicators, we can see the is crossing over , the NVT broke back down below the orange signal line, and there is clearly some short term selling pressure building in the market. So, let's watch to see how BTC responds to the 50 . If it gets below that, the next major support is the purple rising .
On the , we can see that it is red and price has fallen below the cloud. There isn't much sell to speak of, but the indicators are flashing a more neutral to negative short-term outlook. Price needs to hold the 50 support, or the rising purple , to keep the bulls in control.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***