Moral, mental and physical support is all here to give a helping hand. BUT HOW MUCH OF A HAND?
BTC has one more strong safety net before another potential fall- however we are here to analyse the speed that BTC is falling at, and whether the support is strong enough to create a reversal for the coin to continue the prior growth we were seeing.
Supports and resistances
The key to the BTC chart will always be the support and resistance levels, I have found BTC relatively easy to short and long in the last 2 weeks primarily because of how nicely it has acted between my supports and resistances. We have broke the 10.2k support very firmly, and I think we won't reach this area again anytime soon- the next solid support is around the 9.3k and our last solid area of resistance near here was the 9.7k- and given our current candle it would make sense with the weak support levels approaching we will eventually find this area on a downtrend. 8K, then 6k are our next supports but we are currently in a situation where we are very unlikely to see 6k. (this could change)
We officially broke out the ascending triangle on the downside.
The next step is then to turn to our indicators and candle patterns to gage what the selling pressure is on the move to the support and if it's currently weakening.
Candlestick~ oof. I think this candle speaks for itself, it did get oversold at the 9.3k and recovered a bit (the wick shows us this) but primarily from this long leg down we can quite easily say bearish.
EMA~
The EMA's are looking to cross, which can be a very dangerous sign if this does occur, but more cases then not it crosses then crosses again as the 100EMA is a very slowly adjusting indicator given by it's time period. Bearish crosses on both EMA's, usually a really aggressive response to the cross on the 18EMA specifically with bitcoin, which is what happened again.
RSI~
Nearly at support, tiny bit more room to move downwards realistically but looks like it'll be at a halt. If it goes through this support we can expect some lows. Currently oversold but we know how it goes with bitcoin where we can dig ourselves deeper into the sub 30 rsi.
Wave trend oscillator~
Just had a sharp turn however usually the second wave of a turn has a shorter downwards period, meaning the reversal will be sooner and it is much less likely the downwards resumes past the 9.3k given a touch with the -50 occurs. I do love the wave trend oscillator for shorting BTC but in terms of using it for these disgustingly volatile sell off I don't know how reliable the turn is on it.
ADX and DI
~The DI- is so far from the DI+ right now it tells me it will either consolidate or start moving gradually towards it again. The adx is signalling a downtrend is occuring.
Conclusion
I will only personally be happy if the wave trend turns, the DI- starts coming in and the RSI bounces while heading to the 10.2k before I consider making a long again. I personally believe we will hit the 9.3k and this will where the strong support will be. Next levels after penetrating the 9.3k are the 8 and then the 6 (uh oh).
'm not a financial adviser and nothing I say is a fact, any losses made through these decisions do not hold me accountable and you should never invest more than you're willing to lose.
If you liked this short post, be sure to follow and like. It really helps out :D
~Xander
BTC has one more strong safety net before another potential fall- however we are here to analyse the speed that BTC is falling at, and whether the support is strong enough to create a reversal for the coin to continue the prior growth we were seeing.
Supports and resistances
The key to the BTC chart will always be the support and resistance levels, I have found BTC relatively easy to short and long in the last 2 weeks primarily because of how nicely it has acted between my supports and resistances. We have broke the 10.2k support very firmly, and I think we won't reach this area again anytime soon- the next solid support is around the 9.3k and our last solid area of resistance near here was the 9.7k- and given our current candle it would make sense with the weak support levels approaching we will eventually find this area on a downtrend. 8K, then 6k are our next supports but we are currently in a situation where we are very unlikely to see 6k. (this could change)
We officially broke out the ascending triangle on the downside.
The next step is then to turn to our indicators and candle patterns to gage what the selling pressure is on the move to the support and if it's currently weakening.
Candlestick~ oof. I think this candle speaks for itself, it did get oversold at the 9.3k and recovered a bit (the wick shows us this) but primarily from this long leg down we can quite easily say bearish.
EMA~
The EMA's are looking to cross, which can be a very dangerous sign if this does occur, but more cases then not it crosses then crosses again as the 100EMA is a very slowly adjusting indicator given by it's time period. Bearish crosses on both EMA's, usually a really aggressive response to the cross on the 18EMA specifically with bitcoin, which is what happened again.
RSI~
Nearly at support, tiny bit more room to move downwards realistically but looks like it'll be at a halt. If it goes through this support we can expect some lows. Currently oversold but we know how it goes with bitcoin where we can dig ourselves deeper into the sub 30 rsi.
Wave trend oscillator~
Just had a sharp turn however usually the second wave of a turn has a shorter downwards period, meaning the reversal will be sooner and it is much less likely the downwards resumes past the 9.3k given a touch with the -50 occurs. I do love the wave trend oscillator for shorting BTC but in terms of using it for these disgustingly volatile sell off I don't know how reliable the turn is on it.
ADX and DI
~The DI- is so far from the DI+ right now it tells me it will either consolidate or start moving gradually towards it again. The adx is signalling a downtrend is occuring.
Conclusion
I will only personally be happy if the wave trend turns, the DI- starts coming in and the RSI bounces while heading to the 10.2k before I consider making a long again. I personally believe we will hit the 9.3k and this will where the strong support will be. Next levels after penetrating the 9.3k are the 8 and then the 6 (uh oh).
'm not a financial adviser and nothing I say is a fact, any losses made through these decisions do not hold me accountable and you should never invest more than you're willing to lose.
If you liked this short post, be sure to follow and like. It really helps out :D
~Xander
Trade active:
The 9.2-9.3k support has been reached. RSI still has room to drop some more, wave trend hasn't completely turned yet, all eyes watching for a firm break.