DNT/BTC has been in a steep bear trend for the better part of 2 months, but there's signs that bullish strength is beginning to build in the market.
First up, this is a long-shot. So I'm not making ANY buy recommendations yet. I won't even entertain that until we get a solid daily candle that closes above the bear trend line (something that hasn't happened despite multiple attempts). This idea is basically a "keep an eye on it" thing.
So, VZO is showing solid and sustained bullish build up on all charts. Most encouragingly, it's reflecting on the D1 chart and has been for 2 weeks. Sustained build ups of bullish volume while price is dropping is a classic breakout signal. We're also seeing price enter the first true area of volume support, that began with a small consolidation/pullback area after the initial rise in Dec.
However, the bear trend is incredibly strong, and so we have to add a huge dose of cynicism to any signals we see.
Still, I think that barring a BTC collapse (which impacts the whole market), DNT will break the bear trend at some point in the coming few weeks. That level of volume build up can't stay contained for long. The caveat is that if, for some reason, all of that bullish behavior exits the market, then price will collapse. Which is why it's so important to wait for a proper confirmation that the trend has been broken.
I'll keep this updated over the coming few weeks.
Cheers and good luck,
RJR
First up, this is a long-shot. So I'm not making ANY buy recommendations yet. I won't even entertain that until we get a solid daily candle that closes above the bear trend line (something that hasn't happened despite multiple attempts). This idea is basically a "keep an eye on it" thing.
So, VZO is showing solid and sustained bullish build up on all charts. Most encouragingly, it's reflecting on the D1 chart and has been for 2 weeks. Sustained build ups of bullish volume while price is dropping is a classic breakout signal. We're also seeing price enter the first true area of volume support, that began with a small consolidation/pullback area after the initial rise in Dec.
However, the bear trend is incredibly strong, and so we have to add a huge dose of cynicism to any signals we see.
Still, I think that barring a BTC collapse (which impacts the whole market), DNT will break the bear trend at some point in the coming few weeks. That level of volume build up can't stay contained for long. The caveat is that if, for some reason, all of that bullish behavior exits the market, then price will collapse. Which is why it's so important to wait for a proper confirmation that the trend has been broken.
I'll keep this updated over the coming few weeks.
Cheers and good luck,
RJR
Comment:
Hope you picked up the bounce! The market dipped before the 35% bump, but that's not uncommon. The last fake out to clear the novice traders.
The good thing about it is that the indicators stayed bullish the entire time, so you know it was temporary. You have to learn to trust your system/indicators/data.
The good thing about it is that the indicators stayed bullish the entire time, so you know it was temporary. You have to learn to trust your system/indicators/data.
However, the long-term trend line is beginning to be tested and the VZO is holding, which indicates that the build up continues. If the bulls maintain their position in the market then a trend reversal is inevitable (barring a crypto wide event!)