BTC Just Did Something Crazy!
At Derzzy Charts, we love crypto. We just watch the other stuff to understand the macro environment. Being aware of other markets sure helped manage risk back in Volmageddon! Today we are going to look at the big dog BTC. BTC is rallying in the midst of a down equity market, which shows relative strength. Everyone is worried if BTC is correlated to the market or if it isn’t. I say who cares! If something is showing relative strength, you take notice. Let’s hop onto the chart.
Like we had covered before, BTC has already broken out to all time highs in many of the smaller market cap currencies such as the Turkish Lyra and the Russian Ruble. But here we have BTC over UUP, which is an ETF that tracks the US dollar, breaking out to levels not seen in 2.5 years! That is bullish in case you were wondering. Now the question is, how long do we ride the wave? Well BTC has been know to have aggressive legs up (and down), so we want to stay on the ride until we run out of tickets. The Stochastic is showing lots of room to moon, it hasn’t even become overbought yet! This is one ticket that we can watch that will tell us when to get off the ride. The other ticket is the %SMA Oscillator. We can see that levels above 30% are hard to hold, so we will be watching this closely as well. The 161% extension would be a crazy target for this leg, and would put us just under the all time highs. The indicators may need a breather before this happens, so maybe on the next leg. That is all for today folks!
Happy Trading!
At Derzzy Charts, we love crypto. We just watch the other stuff to understand the macro environment. Being aware of other markets sure helped manage risk back in Volmageddon! Today we are going to look at the big dog BTC. BTC is rallying in the midst of a down equity market, which shows relative strength. Everyone is worried if BTC is correlated to the market or if it isn’t. I say who cares! If something is showing relative strength, you take notice. Let’s hop onto the chart.
Like we had covered before, BTC has already broken out to all time highs in many of the smaller market cap currencies such as the Turkish Lyra and the Russian Ruble. But here we have BTC over UUP, which is an ETF that tracks the US dollar, breaking out to levels not seen in 2.5 years! That is bullish in case you were wondering. Now the question is, how long do we ride the wave? Well BTC has been know to have aggressive legs up (and down), so we want to stay on the ride until we run out of tickets. The Stochastic is showing lots of room to moon, it hasn’t even become overbought yet! This is one ticket that we can watch that will tell us when to get off the ride. The other ticket is the %SMA Oscillator. We can see that levels above 30% are hard to hold, so we will be watching this closely as well. The 161% extension would be a crazy target for this leg, and would put us just under the all time highs. The indicators may need a breather before this happens, so maybe on the next leg. That is all for today folks!
Happy Trading!