Hello and welcome to my latest QTUM vs BTC analysis on the daily log chart.
As you can see we are currently testing the 23.6% Fib levels resistance. We last tested the resistance of this level after the massive green candle that occurred on the 19th of March; in which we ultimately failed to break through it and started to trade sideways in a channel. At the time of the massive green candle we were well below the 26 EMA and 12 EMA; whereas the difference now is that we had a bullish crossover occur on the 18th of April; and have since confirmed both EMAs as support. This is a good looking sign for things to come!
The MACD has is currently trading above the signal line and although momentum is low, it is slowly building to the upside. RSI is signaling that there is some strength in a move further to the upside building. Likewise, Aroon Up crossed over the Aroon Down line in a bullish manner back on the 13th of April. These three indicators combined are suggesting a bullish move up and out of the 23.6% is likely imminent if we can get some more strength and momentum going.
From a pattern perspective we are forming a potential cup and handle pattern which if completed would take us up as high as the 38.2% Fib level. Now once we are there; the 38.2% Fib level is not likely to give us much trouble. This is because although we tested it as confirmed resistance back on 27/02, volume was low and we were also in a clear down trend at that time. With volume, we should blast through its defenses and head straight to the 61.8% Fib level which has a bit more resistance behind it.
It is also worth noting that we have a potential three inside up candle pattern emerging on the daily chart, denoting with high reliability of a bullish reversal.
From my perspective (although I am bullish) I am waiting for a confirmed break out above the 23.6% Fib before going long. There is still a slight chance we could fall further down and create a double bottom before the run up to test the 61.8% Fib level (this is crypto after all!) which is why it is always important to wait for confirmation before placing a trade.
Anyways happy and safe trading and don’t forget to follow me for regular updates!
Cheers
As you can see we are currently testing the 23.6% Fib levels resistance. We last tested the resistance of this level after the massive green candle that occurred on the 19th of March; in which we ultimately failed to break through it and started to trade sideways in a channel. At the time of the massive green candle we were well below the 26 EMA and 12 EMA; whereas the difference now is that we had a bullish crossover occur on the 18th of April; and have since confirmed both EMAs as support. This is a good looking sign for things to come!
The MACD has is currently trading above the signal line and although momentum is low, it is slowly building to the upside. RSI is signaling that there is some strength in a move further to the upside building. Likewise, Aroon Up crossed over the Aroon Down line in a bullish manner back on the 13th of April. These three indicators combined are suggesting a bullish move up and out of the 23.6% is likely imminent if we can get some more strength and momentum going.
From a pattern perspective we are forming a potential cup and handle pattern which if completed would take us up as high as the 38.2% Fib level. Now once we are there; the 38.2% Fib level is not likely to give us much trouble. This is because although we tested it as confirmed resistance back on 27/02, volume was low and we were also in a clear down trend at that time. With volume, we should blast through its defenses and head straight to the 61.8% Fib level which has a bit more resistance behind it.
It is also worth noting that we have a potential three inside up candle pattern emerging on the daily chart, denoting with high reliability of a bullish reversal.
From my perspective (although I am bullish) I am waiting for a confirmed break out above the 23.6% Fib before going long. There is still a slight chance we could fall further down and create a double bottom before the run up to test the 61.8% Fib level (this is crypto after all!) which is why it is always important to wait for confirmation before placing a trade.
Anyways happy and safe trading and don’t forget to follow me for regular updates!
Cheers
