This_Guhy

SMAs show Bear Market Transitioned into Consolidation (Not Bull)

Long
BITSTAMP:BTCUSD   Bitcoin
One simple guideline of a moving average investing/trading strategy is to look at the ordering of the price action and moving averages. There is also the importance of selecting an appropriate timeframe and for longer term signals I am going to be making the case that the 12h chart works rather well. On the main chart from top to bottom (disregarding the orange 50w MA) you see we have:
Price action
  • 20MA
  • 50MA
  • 100MA
  • 200MA
For bear markets you would have the inverse, from top to bottom you would have
  • 200MA
  • 100MA
  • 50 MA
  • 20MA
  • Price Action
As the price thrashes about while moving sideways the ordering of the moving averages can change. The main chart shows everything just entered the proper order for a clear uptrend and the chart below shows the historic times that the sorting as been proper for an uptrend on BTCUSD. If you notice the blue arrows you will see that when this happens we often get a powerful move to the upside, and sometimes those moves are parabolic. I haven’t bothered to show all the measured moves for percent gains because that would crowd the chart, but I have included the 50w MA programed through the CM_ultimate to show on the 12 chart. The chart below shows the birds eye view of all the times the SMAs and price action stacked properly. This isn’t financial advice for you guys but when I see a cryptocurrency stack properly I am going to look at using leverage to get at those gains, and I am going to be looking for the best positioned coin to anchor my portfolio.
The first orange arrow shows where I think we are now relative to 2014-15 bear market and the falling wedges below should show why. Shortly after we get our MA stack sorted we smack into the 50w MA ang get rejected all the way back down to the 200w MA (not shown). Price action consolidates, breaks the 50w and has a massive melt-up.
In the current scenario the 50MA is a bit further away and so the percent to target is different, but I cannot see why we would not once again have the price action experience at least one rejection at the 50w. And really study that last chart, a lot of moves based of the 50w MA cost me a lot of money due to my inexperience using that timeframe for crypto.
Long and short we are in consolidation from this point until we break the 50w MA. The next six months or so should be really choppy.

And I promise every Floridian that you will all be rich... because we're gonna print some more money! Why didn't anybody ever think of this before?

~Nathan Explosion
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