Good Evening and welcome to this update on the subterranean homesick blues in Bitcoin.
As pointed out in my last chart I highlighted on the DMI where the -DM and +DM had just crossed as the ADX was showing a stronger trend pending. I compared that to the last time we saw this along with a few other indicators, and indeed, we did drop significantly.
Lets take a look again at the DMI again and see whats going on there. The ADX clearly indicates when the trend is gaining or losing momentum. Momentum is the velocity of price. A series of higher ADX peaks means trend momentum is increasing, while a series of lower ADX peaks means trend momentum is decreasing. The ADX was showing a series of lower peaks (dotted red line on in the DMI chart) however it has broke out of that which is indicating a stronger momentum in the trend we are currently in which is bearish.
Also, looking at the last time we broke above the mid 40's on the ADX and into the high 40's was on 2/2 right before BTC found a bottom on 2/6. Even thought the RSI on 2/2 showed oversold, the strength indicator stayed true and showed us we were indeed in a strong trend. We are currently seeing the exact same thing where the RSI is showing oversold but since the cross in directional movement and the ADX is pushing the upper 40's signaling this strong trend we have submit we could easily break our current support and head further down.
We need some strong signals to show we can hold this support and we need them soon, but as for now and what the charts say we are likely to break this support and fall to the next support line around $7800. There is some support around the $8400 mark as well but not as much so I only chose to leave the other support line on my chart indicating that is the one I think we could fall to.
Lastly, THANK YOU for all the views and LIKES on the the last post! Also, feel free to comment, I love learning from others so let me know what you see, agree or disagree, all are welcome!
IF I get 15 likes I will post an update on 3/11!
Happy Trading :)
Much Love
DustyPH
***This information is not a recommendation to buy or sell***
As pointed out in my last chart I highlighted on the DMI where the -DM and +DM had just crossed as the ADX was showing a stronger trend pending. I compared that to the last time we saw this along with a few other indicators, and indeed, we did drop significantly.
Lets take a look again at the DMI again and see whats going on there. The ADX clearly indicates when the trend is gaining or losing momentum. Momentum is the velocity of price. A series of higher ADX peaks means trend momentum is increasing, while a series of lower ADX peaks means trend momentum is decreasing. The ADX was showing a series of lower peaks (dotted red line on in the DMI chart) however it has broke out of that which is indicating a stronger momentum in the trend we are currently in which is bearish.
Also, looking at the last time we broke above the mid 40's on the ADX and into the high 40's was on 2/2 right before BTC found a bottom on 2/6. Even thought the RSI on 2/2 showed oversold, the strength indicator stayed true and showed us we were indeed in a strong trend. We are currently seeing the exact same thing where the RSI is showing oversold but since the cross in directional movement and the ADX is pushing the upper 40's signaling this strong trend we have submit we could easily break our current support and head further down.
We need some strong signals to show we can hold this support and we need them soon, but as for now and what the charts say we are likely to break this support and fall to the next support line around $7800. There is some support around the $8400 mark as well but not as much so I only chose to leave the other support line on my chart indicating that is the one I think we could fall to.
Lastly, THANK YOU for all the views and LIKES on the the last post! Also, feel free to comment, I love learning from others so let me know what you see, agree or disagree, all are welcome!
IF I get 15 likes I will post an update on 3/11!
Happy Trading :)
Much Love
DustyPH
***This information is not a recommendation to buy or sell***
Comment:
Our MAJOR SUPPORT line is now going to act as our MAJOR RESISTANCE line (drawn in my chart above). We could potentially touch this going back up but we are still looking overly bearish and all indicators are still showing we are in a downtrend and headed further. We would need to see BTC break this new resistance and hold but not looking good as of now.