Many traders keep expecting Bitcoin to keep falling, but it doesn't want to give up. Bitcoin continues to hold the 200 weekly SMA, which has historically been the support level in a bear market.
For the second time in a row, Bitcoin has formed a falling wedge pattern on the daily chart and had a successful break out. This was a great opportunity for a low risk entry. Volatility and volume were decreasing and Bitcoin was approaching strong support: a double bottom as well as the 200 week SMA. Even though Bitcoin broke out of the falling wedge with increased volume, the move was met with resistance from the 50 day EMA. The 50 day EMA has been resistance for months now and I would like to see Bitcoin get above it, but it doesn't need to become strong support (as we saw in this last bull run where it was frequently broken). This will be a level to keep an eye on.
I just posted an analysis on Litecoin and why I'm bullish there and I think that continued bullishness with Litecoin can help Bitcoin gain some momentum. Litecoin gained momentum before Bitcoin after the last bear market and it may do it again and is worth keeping an eye on.
Ultimately though I am watching the 200 week SMA on Bitcoin, that is the line in the sand for me. If Bitcoin can stay above it and continue to treat it as support, then that will be a bullish sign to me and i'll be happy as a buyer above that line because I know my risk. And if it closes a daily candle below that would be a very bad sign in the short to medium term and I would have to re-evaluate my position at that time.
I post these charts as I see them in real time on Twitter, so follow me for more frequent ideas / updates! My twitter link is on my trading view profile page.
*This is not financial advice. For entertainment and educational purposes only.
-Brad
For the second time in a row, Bitcoin has formed a falling wedge pattern on the daily chart and had a successful break out. This was a great opportunity for a low risk entry. Volatility and volume were decreasing and Bitcoin was approaching strong support: a double bottom as well as the 200 week SMA. Even though Bitcoin broke out of the falling wedge with increased volume, the move was met with resistance from the 50 day EMA. The 50 day EMA has been resistance for months now and I would like to see Bitcoin get above it, but it doesn't need to become strong support (as we saw in this last bull run where it was frequently broken). This will be a level to keep an eye on.
I just posted an analysis on Litecoin and why I'm bullish there and I think that continued bullishness with Litecoin can help Bitcoin gain some momentum. Litecoin gained momentum before Bitcoin after the last bear market and it may do it again and is worth keeping an eye on.
Ultimately though I am watching the 200 week SMA on Bitcoin, that is the line in the sand for me. If Bitcoin can stay above it and continue to treat it as support, then that will be a bullish sign to me and i'll be happy as a buyer above that line because I know my risk. And if it closes a daily candle below that would be a very bad sign in the short to medium term and I would have to re-evaluate my position at that time.
I post these charts as I see them in real time on Twitter, so follow me for more frequent ideas / updates! My twitter link is on my trading view profile page.
*This is not financial advice. For entertainment and educational purposes only.
-Brad