BTC, "I'm on the edge and I'm about the break" ...But which way?
4Hr Chart
20-EMA Gold
50 EMA-Blue
We are standing at a cliff-edge and deciding whether to jump or not.
This is the area where we will either see a nice bounce, a complete market reversal, or a long fall. We have falling wedge pattern forming which if obeyed would bring us down past our weekly support in the 4k areas. See Trend line on the chart for exact levels. Currently, we are sitting about in the middle of this wedge, which mean we have wiggle room on both sides. We are also perched right above our final support level before the free fall.
We are currently in flag consolidation. This flag doesn't have any sort of clear direction as to whether its slanting up or down. Typically a flag that slants upward is bearish while a downward slanted flag would be more bullish. Our 20 EMA is approaching this consolidation area; as well as, our purple resistance. With their powers combined captain planet might just shove BTC over the edge in order to bring harmony back to nature.
RSI is currently in the oversold area. This means that this could be a potential turn around point and heck we are sitting right on a support right? Well, the RSI can potentially remain oversold for an extended period of time, there is no rule telling the RSI to come back. If you want to see what I mean just look at the RSI being overbought during our insane bull run in November 11-December 9. It stayed overbought that whole time. At the same time we could experience a bounce that brings our RSI back up into overbought and then back down to test/break this support still in the future. A bounce up to the wedge resistance and consolidation at that level before dropping could satisfy a whole daily Stochastic RSI wave.
Death Cross on Easter Weekend !? Ironic. I would say that this death cross is valid considering the high volume that we had prior to its crossing. This would put another layer of bearishness over BTC price action.
This chart represents my prediction.
For if/then statements:
-If RSI breaks trend, on the daily time frame & 20 EMA, & we break above all three immediate resistances , slanted Purple low strength resistance, Grey Flag, and Blue weekly resistance, consider a short term trade up to the 50 EMA/slanted yellow, line which is the resistance of our falling wedge pattern.
Tip for Buying: You could look for it to push through first and then let it float back down to these trend line areas before buying which would be buying on the potential confirmation. Or after it has confirmed, tested these areas as support, buy as it goes up from there. Have exits that you are comfortable with already planned out before you enter your trade.
-If we break our last support, currently about 6600 area, then I suggest pulling your parachute cord because its going to be a long fall.
+ I encourage you to play around with this chart.. Its in the 4hr TF but I would appreciate it if you looked an the lines, where they came from, zoomed in and looked at the flag pattern, check out the RSI trend on the daily etc... Snoooop around.
*Disclaimer- We are in a very bearish market with a lot of FUD, be sure to watch this closely for any breaks down. Consider leveled stops.
Oh and yeah um, Not Financial Advice... just some pretty pictures
20-EMA Gold
50 EMA-Blue
We are standing at a cliff-edge and deciding whether to jump or not.
This is the area where we will either see a nice bounce, a complete market reversal, or a long fall. We have falling wedge pattern forming which if obeyed would bring us down past our weekly support in the 4k areas. See Trend line on the chart for exact levels. Currently, we are sitting about in the middle of this wedge, which mean we have wiggle room on both sides. We are also perched right above our final support level before the free fall.
We are currently in flag consolidation. This flag doesn't have any sort of clear direction as to whether its slanting up or down. Typically a flag that slants upward is bearish while a downward slanted flag would be more bullish. Our 20 EMA is approaching this consolidation area; as well as, our purple resistance. With their powers combined captain planet might just shove BTC over the edge in order to bring harmony back to nature.
RSI is currently in the oversold area. This means that this could be a potential turn around point and heck we are sitting right on a support right? Well, the RSI can potentially remain oversold for an extended period of time, there is no rule telling the RSI to come back. If you want to see what I mean just look at the RSI being overbought during our insane bull run in November 11-December 9. It stayed overbought that whole time. At the same time we could experience a bounce that brings our RSI back up into overbought and then back down to test/break this support still in the future. A bounce up to the wedge resistance and consolidation at that level before dropping could satisfy a whole daily Stochastic RSI wave.
Death Cross on Easter Weekend !? Ironic. I would say that this death cross is valid considering the high volume that we had prior to its crossing. This would put another layer of bearishness over BTC price action.
This chart represents my prediction.
For if/then statements:
-If RSI breaks trend, on the daily time frame & 20 EMA, & we break above all three immediate resistances , slanted Purple low strength resistance, Grey Flag, and Blue weekly resistance, consider a short term trade up to the 50 EMA/slanted yellow, line which is the resistance of our falling wedge pattern.
Tip for Buying: You could look for it to push through first and then let it float back down to these trend line areas before buying which would be buying on the potential confirmation. Or after it has confirmed, tested these areas as support, buy as it goes up from there. Have exits that you are comfortable with already planned out before you enter your trade.
-If we break our last support, currently about 6600 area, then I suggest pulling your parachute cord because its going to be a long fall.
+ I encourage you to play around with this chart.. Its in the 4hr TF but I would appreciate it if you looked an the lines, where they came from, zoomed in and looked at the flag pattern, check out the RSI trend on the daily etc... Snoooop around.
*Disclaimer- We are in a very bearish market with a lot of FUD, be sure to watch this closely for any breaks down. Consider leveled stops.
Oh and yeah um, Not Financial Advice... just some pretty pictures
Comment:
I just checked the Stochastic RSI's and though on the daily TF we are nicely at the bottom in the oversold area, our 2 hr (Partial), 3 hr, and 4 hr are in the overbought and I would wait for the 4 hr Stochastic RSI to be past the 20 level before buying, if you are looking for a day/swing entry.
Comment:
Our Purple descending trend line and our 20 EMA have acted as resistance to our price action. Our Stochastic RSI continues to stay in the oversold area, but if we cannot surpass these important resistance levels then we could remain in the oversold area for an extended period of time.
Comment:
*as well as our blue ascending long term trend line
