entertheroach

BTC - Let's have a look at the Daily Chart

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
BTC Update:

BTC has finally made it above its major resistance area and turned that level into support.

BTC is back below its Pitchfork (A,B,C) Median Line .

BTC is still above its Bollinger Bands Middle Band Basis 20 Period SMA . Note that Volatility is actually still low on this 1D timeframe because we do not yet have expansion of the Upper and lower Bollinger Bands . Note that the Upper Band is starting to point Downwards and the Lower Band is still moving upwards indicating we may see a Bollinger Bands Pinch on this 1D timeframe.

At the moment of posting this, BTC has dropped below its Least Squares Moving Average ( LSMA ). A close above this level is crucial. A close below the LSMA will probably mean a drop back into the support area and possibly the BB Middle Band Basis.

Using the 20,60,120,30 settings for the Ichimoku Cloud , note that we now have a Cloud (Kumo) Twist into a new Bullish Green Cloud for this 1D timeframe.

Note that BTC is still above its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 7 daily candles i have selected.

BTC is still above its Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range.

Note that Volume today is still low and the Volume Bar is still under its Volume 20 Period Moving Average, that could change as the day ticks on.

Using Simple Moving Averages, note that the 50MA is still rising and it looks like we may very soon see a 50MA cross back over and above the 200MA creating a GOLDEN CROSS for this 1D timeframe.

The Average Directional Index ( ADX DI) is indicating the trend strength has increased with the ADX (Orange Line) at 28.17 heading sideways but very close to crossing over and above its 9 Period EMA (Black line) which is at 28.20. The +DI (Green Line) has dropped to 23.21 and the -DI (Red Line) has increased to 11.47 at the moment. This means that Positive momentum has dropped and Negative momentum has increased on this 1D timeframe. Note however that there is still a big gap between the +DI (Green Line) and -DI (Red Line) so the price would have to drop substantially for Negative momentum to become dominant on this 1D timeframe.


The Relative Strength Index ( RSI ) is indicating momentum is downwards on this 1D timeframe at the moment. Note that the RSI (Purple Line) is back below its 9 Period EMA (Red Line) indicating increased strength for negative momentum at the moment.


So key levels to watch for a daily close ABOVE or BELOW on this 1D timeframe are the LSMA , VPFR POC and the Upper Support Zone . The Bollinger Bands Middle Band Basis becomes the next crucial level to watch if those previous levels mentioned fails as support.

I hope this is helpful with your Trading and Hodl-ing.



Notes for those who don’t know:

LSMA = Black Squiggly Line on chart
50MA = Yellow Squiggly Line on Chart
200MA = Red Squiggly Line on Chart
Bollinger Bands = Grey Bands on Chart
Pitchfork = A,B,C Pattern on Chart
Ichimoku Cloud = Red and Green Cloud Pattern on Chart
VPVR POC = Long Horizontal Red Line on Chart
VPFR POC = Short Horizontal Red Line on Chart
Volume Bar = Bottom of Chart
Volume 20 Period MA = Black Line Going through volume Bars
Support Areas = Horizontal Parallel Black Lines with Yellow Shading
Comment: Wow, liquidation across the nation! Tonight's daily candle CLOSE will be crucial in deciding what happens for the rest of the week.

Best-case scenario = THIS daily candle CLOSE in the Ichimoku Cloud Bullish Zone

Medium-case scenario = THIS daily candle CLOSE back inside the Ichimoku Cloud Equilibrium Zone

Worst-case scenario = THIS daily candle CLOSE back in the Ichimoku Cloud Bearish Zone

Comment: Quick update:

BTC is back in the Ichimoku Cloud Equilibrium Zone for this 1D timeframe. BTC needs to cross back above and CLOSE a daily candle ABOVE the Ichimoku Cloud Leading Span B (Senkou Span B) resistance level.

Note that BTC is perfectly following the curve of the Leading Span B (Senkou Span B) resistance level.

BTC has found some support from its 50MA, if the 50MA support fails we may see a drop to around $43,864 - $42,760 support area.

A "getting worse" case scenario is a drop to around $41,370 - $40,520 support area & if BTC closes a daily candle under this support area then we will revisit around $31k.

A daily close ABOVE the 50MA is absolutely crucial tonight.

I hope this is helpful.