Bitcoin - Lights out if we lose the 50MA on the daily
That small curve the 50MA is beginning to make on the chart above is worth noting (you may have to zoom in to see it) why? Because it will now act as support for BTC and this is where things get a bit more interesting. If Bitcoin can stay above the 50MA for a few candles it may stage a strong up move to the resistance red line (will we exit? Who knows) but if it falls under it will try to reach 6500 - 7k. There's a lot of responsibility on the 50MA 1 Day chart, for now, this is a leading measure worth watching. Also, we're in the middle of the downtrend channel which as you know gives us better odds of going down than up. What does make this battle zone a little more interesting is that the 6H is going through the same thing with the 200MA as you can see below (This is a faster-moving version of the 1D battle.)
So we are at the point where we need to pay attention, our buy orders should be all set at around $7K and $4700. Sometimes exchanges generate wicked long spikes that can reach down to very low areas in a few minutes before they start their move up, so set them up and leave them be. You can also set up orders on high performing top 10 alts. Do not buy coins that are not well known, you will lose your money that way.
To keep it short and sweet all we have to do now is keep an eye on that area of interest. Do not FOMO if we move up, we only buy once we have confirmation that we are going up. If you are 100% on USD or USDT you can buy a little (10% to 15%) once we hit the 50MA again on the 1D. Read the chart carefully it has a lot of info.
What's considered confirmation is this scenario?
If we exit the downtrend channel with a decisive candle, or if we close 3 small candles above the trendline. Not to worry I will put an entry point if this scenario comes to fruition.
NOW, THE LEGEND;
Support trendlines are green
Resistance trendlines are Red
Horizontal support lines are white, the thicker the stronger the support
50 Moving Average is yellow
200 Moving Average is white
THE TREND: Going Down, we have not made a new higher high
THE OUTLOOK: Expected to go down, unexpected if it goes up.
So we are at the point where we need to pay attention, our buy orders should be all set at around $7K and $4700. Sometimes exchanges generate wicked long spikes that can reach down to very low areas in a few minutes before they start their move up, so set them up and leave them be. You can also set up orders on high performing top 10 alts. Do not buy coins that are not well known, you will lose your money that way.
To keep it short and sweet all we have to do now is keep an eye on that area of interest. Do not FOMO if we move up, we only buy once we have confirmation that we are going up. If you are 100% on USD or USDT you can buy a little (10% to 15%) once we hit the 50MA again on the 1D. Read the chart carefully it has a lot of info.
What's considered confirmation is this scenario?
If we exit the downtrend channel with a decisive candle, or if we close 3 small candles above the trendline. Not to worry I will put an entry point if this scenario comes to fruition.
NOW, THE LEGEND;
Support trendlines are green
Resistance trendlines are Red
Horizontal support lines are white, the thicker the stronger the support
50 Moving Average is yellow
200 Moving Average is white
THE TREND: Going Down, we have not made a new higher high
THE OUTLOOK: Expected to go down, unexpected if it goes up.
