This is a quick update on BTC's short-term price action following the holding of the 1D MA50 showed on my last post.
I am taking you to the 4H time-frame on this study, as perhaps the most important development over the weekend was the fact that the 4H MA50 (blue trend-line on the chart) has held twice in the last three days. This is quite important as since the January 08 High, the 4H MA50 hasn't supported any upside sequence. In fact in has caused three clear rejections.
The 4H MA50 is an important short-term indicator as despite January's weakness, it has provided excellent support on Bitcoin's late 2020 parabolic rise. In fact, as you see on the chart below, we can count 15 clear bounces since October 2020 and only 2 times it broke:
What does this mean for BTCUSD now? Well if the 4H MA50 continues to hold, we may start seeing another sustainable uptrend in February. In fact we have an emerging Channel Up, with the LMACD ascending since January 22 and about to form a Bullish Cross.
Do you think the 4H MA50 will hold and kickstart and new uptrend? Feel free to share your work and let me know in the comments section!
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I don't see it. I agree there was a bounce off the MA50 but surely you must attribute that to the Elon pump? If you look at BTC now it's back trending inside the larger wedge that was created a few weeks ago. We're heading for a significant move soon either up or down. I suspect it will be another test of the base.
SacramentoKings
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I thanks !
DACapitalTrading
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Clean work, all the best!
PalenTrade
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Check out this Ethereum trend
ProjectSyndicate
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nice update today for bitcoin position traders. seems like bulls defended 30K support once again.
BelowZero
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Very good point. Besides we are only a few days in with the 4H MA50 < 4H MA 200 , versus more than one month with this same occurrence on the 4H before the inversion in the 4 H MAs polarities, the last time this happened.
Looks still pretty recoverable to me...
cosmicnexus
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Hey TS... indeed good support, it's also supported on the 1D MA50 (also the the bottom BB at the time) bounce on 1/27, and the 1D 1/22 very hard bounce off the 0.28732 auto fib level. Since that 1D 1/22 hard bounce, on the 1D it's been consolidating between the MA20 and MA50 which are steadily getting closer together. I'm therefore watching for a close either above the 1D MA20 or below the 1D MA50 as a breakout signal.The probabilities would seem to favor an upside breakout too.