Our good friend
BTCUSDT
is currently trying to play with us and it is our job to outsmart it and think like a whale to get the most out of the situation.
Disclaimer: This post is not meant to say "BTC is going up!" or "BTC is going down!". It is meant to help you understand how to read charts and come to a conclusion. I rarely trade on the fact that I know where the market is going. Instead, I look for situations where I have a high chance of winning. I also may use indicators in slightly different ways than other people. That is ok! Trading is an art, not a science. People are going to do things differently. It is my job to help give you the knowledge to find your own path.
You can see from the chart above that I have a lot of different things going on and I want to break down each of those things so we can come to a good conclusion.
EMA Cross (BULLISH): This went "positive" (green crossing up on red) about a week ago and since then we have seen some bullish movement. Right now the price is using the short term EMA ( the green line) as the support which is a good sign. If we do fall below this level, we still have the longer term EMA there to act as the support.
200-Day EMA (NEUTRAL): A price that is above this number is bullish and a price that is below this number is bearish (generally speaking). Right now it may or may not act as the support. There will be more information on it after more time passes.
Bollinger Bands (BEARISH): After the last retrace, we were unable to continue in a positive direction towards the top band. This is a sign of a possible retrace.
Stochastic (NEUTRAL): A high stochastic on a longer term chart is not necessary a bad thing. Actually, when you look at previous bull runs for BTC, the stochastic stays above that red support line that I have drawn. It would be a good thing if we can stay above that level but I think we will drop slightly below it.
RSI (NEUTRAL): You can see that the green RSI line of 50 that I have drawn is a great indication of market movement. With that in mind, there is still room for the price to drop to that level. This tells us that there is room to drop.
So what does all of this mean?
The key level that I am watching is $7200. If we are able to hold above that level we will more than likely push towards the $10,000 resistance (green rectangle).
What if we fall below 7200?
In that case, we will probably more towards the green bullish support and then the red rectangular support that I have drawn.
Use this information to help you understand where to put stop loss and where to buy in. If you have any questions, let me know!
BTCUSDT
is currently trying to play with us and it is our job to outsmart it and think like a whale to get the most out of the situation. Disclaimer: This post is not meant to say "BTC is going up!" or "BTC is going down!". It is meant to help you understand how to read charts and come to a conclusion. I rarely trade on the fact that I know where the market is going. Instead, I look for situations where I have a high chance of winning. I also may use indicators in slightly different ways than other people. That is ok! Trading is an art, not a science. People are going to do things differently. It is my job to help give you the knowledge to find your own path.
You can see from the chart above that I have a lot of different things going on and I want to break down each of those things so we can come to a good conclusion.
EMA Cross (BULLISH): This went "positive" (green crossing up on red) about a week ago and since then we have seen some bullish movement. Right now the price is using the short term EMA ( the green line) as the support which is a good sign. If we do fall below this level, we still have the longer term EMA there to act as the support.
200-Day EMA (NEUTRAL): A price that is above this number is bullish and a price that is below this number is bearish (generally speaking). Right now it may or may not act as the support. There will be more information on it after more time passes.
Bollinger Bands (BEARISH): After the last retrace, we were unable to continue in a positive direction towards the top band. This is a sign of a possible retrace.
Stochastic (NEUTRAL): A high stochastic on a longer term chart is not necessary a bad thing. Actually, when you look at previous bull runs for BTC, the stochastic stays above that red support line that I have drawn. It would be a good thing if we can stay above that level but I think we will drop slightly below it.
RSI (NEUTRAL): You can see that the green RSI line of 50 that I have drawn is a great indication of market movement. With that in mind, there is still room for the price to drop to that level. This tells us that there is room to drop.
So what does all of this mean?
The key level that I am watching is $7200. If we are able to hold above that level we will more than likely push towards the $10,000 resistance (green rectangle).
What if we fall below 7200?
In that case, we will probably more towards the green bullish support and then the red rectangular support that I have drawn.
Use this information to help you understand where to put stop loss and where to buy in. If you have any questions, let me know!