Butterflies and Hurricanes - BTC

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
Good Afternoon and welcome to this thought contagion update on BTC .

If you notice my chart on 3/7 I gave you the call we were headed down when we were at $10,700 and we dropped to around $8400. A savings of around 20%!! I pointed out several key indicators to show support for this and today we will be looking at the same indicators to see if we have an idea on where we are headed next.

First we can see that BTC has broke what was previously our major support line and this is now acting as the resistance. Currently as I am typing this, We have broke through the resistance line within the past 30 mins which is a good sign.

Looking at the DMI we can see that the ADX is still high showing us we are in a strong trend, and the +DM is working its way up (and is ever so close) to crossing with the -DM. IF they cross this would be a good buy signal. The MACD has crossed and is turning up and the RSI is producing higher lows.

All signs are look good as we speak but the next few hours will be critical to see if: 1) BTC close above the current resistance line. 2) The +DM cross the -DM. 3) The RSI to stay above 50.

IF I get 15 likes I will post an update on 3/14!

JUST for fun, I referenced 3 song titles in this post by one band... do you know the band?

Happy Trading :)

Much Love


*all comments are welcome*

***This information is not a recommendation to buy or sell***
Comment: We have seen a bar close above the resistance line but the directional movement has not crossed... We need a good rally here or we will fall back below the resistance line
Comment: Directional movement is still holding parallel but hasn't crossed yet. Will we see a magnet reaction and watch them push away or will they cross and show us the bulls are back?
Comment: The past 2 candles are holding at the support which is good but we need to see the other indicators shows us movement to help solidify this is not a false breakout. So close, but not there yet...
Comment: Looking at the DMI we just had a crossover and the ADX is holding showing we are still in a good trend. Also the RSI is holding above 50 which is were we need support. Looks like we are breaking the resistance and could move up. We could some resistance as we get around the 10.2K and then 10.8K. marks. I will give a better and closer update on these resistance levels later as we progress.

Just for reference, since 2/13 we have had 4 crossovers on the DMI, all leading to significant movement in the charts. There is always a possibility of a failed breakout (the DMI will cross back and we will begin to fall), however looking at the recent past this is a very positive sign.
Comment: We have dropped significantly in the last few hours. The DMI has crossed again and looking like this could be a failed breakout... Let's keep an close eye on this to see what happens.
Comment: Looking at the charts it looks like BTC is trying to form a bear flag, however I am still not convinced on a full breakdown.

Looking at the DMI, the ADX has fallen below 25 showing no significant trend is in place, and the RSI is still producing lower lows. The -DM is still on top but leveling out with the +.

So, could we still break down to 6k? Possibly, but for the moment we are holding steady.

Any moment above or below the flag will be a good indication as to which way we will go.
Comment: *movement
Comment: Looks like our bear flag is breaking down... Expect to see BTC fall to the 2nd support line in thi chart... If we break that we will see a retest of the 6k range.
Comment: We are piercing through our support line... Next support is around 7750
New BTC chart

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