Bitcoin is Quiet. A Little TOO Quiet, if You Ask Me. (BTC)
Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it. Looking at the daily chart, you can see that the breakout of the large symmetrical triangle (in red) has failed to yield any real volatility. Instead, BTC has morphed into another triangle formation (in blue,) as price continues to drift sideways. BTC is almost at the apex of this blue triangle, so the triangle will only be in play for another 10 days or so.
If we look at the blue triangle's price action, to try to determine the most likely breakout direction, we can see that the bottom of the triangle has already been pierced on two separate occasions (pink circles.) Furthermore, the 50 EMA (in orange) has continued to provide powerful overhead resistance, as I had warned in my previous posts. Judging by these characteristics, it's clear that the highest probability direction is still sideways/lower. With that said, this is a situation where you definitely want to wait for a confirmation breakout, and some real volatility to emerge. Until we see something like that, sideways markets simply aren't a good place to trade.
There are some major things to watch out for though. On the upside, if we see a confirmed breakout above the 50 EMA and the top of the blue triangle, with a healthy volume spike, that would be a good sign for the bulls. Especially if price were to return to the top of the 50 EMA and hold it as support. That move in particular, is what I am watching for on the upside. If BTC breaks above the 50, and then holds it as support, I will buy a subsequent bounce off of the 50, on nice volume.
On the downside, if we break down from the blue triangle, and begin to see some downside acceleration, I will short with a target at the rising black trendline. Ultimately, I believe that the most likely situation is that BTC will continue to maintain it's low volatility state, as it drifts sideways to lower, until it runs into the black trendline. Some new future volatility would obviously change that perspective, but that is the most likely scenario at the moment.
On the MACD, there is something interesting to note. BTC's momentum just can't get above the zero line, which is a slightly bearish indication. It's interesting because the MACD's zero line is corresponding perfectly with the resistance provided by the 50 EMA. You can see that there is a long rising green support level on the MACD, and if momentum breaks below it, particularly with expanding momentum, that would be a nice sell signal.
Keep this in mind. If the buyers don't buy, the sellers WILL sell. The bulls can only run into that 50 EMA so many times, before the sharks jump in for some easy lunch. With that said, it's best to remain on the sidelines, until some real volatility begins to emerge.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
If we look at the blue triangle's price action, to try to determine the most likely breakout direction, we can see that the bottom of the triangle has already been pierced on two separate occasions (pink circles.) Furthermore, the 50 EMA (in orange) has continued to provide powerful overhead resistance, as I had warned in my previous posts. Judging by these characteristics, it's clear that the highest probability direction is still sideways/lower. With that said, this is a situation where you definitely want to wait for a confirmation breakout, and some real volatility to emerge. Until we see something like that, sideways markets simply aren't a good place to trade.
There are some major things to watch out for though. On the upside, if we see a confirmed breakout above the 50 EMA and the top of the blue triangle, with a healthy volume spike, that would be a good sign for the bulls. Especially if price were to return to the top of the 50 EMA and hold it as support. That move in particular, is what I am watching for on the upside. If BTC breaks above the 50, and then holds it as support, I will buy a subsequent bounce off of the 50, on nice volume.
On the downside, if we break down from the blue triangle, and begin to see some downside acceleration, I will short with a target at the rising black trendline. Ultimately, I believe that the most likely situation is that BTC will continue to maintain it's low volatility state, as it drifts sideways to lower, until it runs into the black trendline. Some new future volatility would obviously change that perspective, but that is the most likely scenario at the moment.
On the MACD, there is something interesting to note. BTC's momentum just can't get above the zero line, which is a slightly bearish indication. It's interesting because the MACD's zero line is corresponding perfectly with the resistance provided by the 50 EMA. You can see that there is a long rising green support level on the MACD, and if momentum breaks below it, particularly with expanding momentum, that would be a nice sell signal.
Keep this in mind. If the buyers don't buy, the sellers WILL sell. The bulls can only run into that 50 EMA so many times, before the sharks jump in for some easy lunch. With that said, it's best to remain on the sidelines, until some real volatility begins to emerge.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-