BTC bottem is in, upside to come according to volume pattern
Good evening everyone,
Today I took a good look at BTC.
First I want to share some information about volume with you because it is very important to understand how this can be viable information in trading.
There are three types of volume:
1: Igniting: Ignites a move in a new direction or continues and already strong/weak non-extended move.
2: Ending: Ends the current (extended) move.
3: Resting volume: Allows the stock to rest enough to continue its current move after a pause. Typically seen in consolidation breakouts/breakdowns.
I use these 3 types of volume to help discern when a stock might change direction or continue a move. Keep in mind, I am not only looking at volume, but I am also looking at support/resistance areas, how the stock arrived at its current location as well as the volume associated with the move. Lastly, on certain types of moves (especially climatic reversals), it is common to have both types of volume happening in succession.
Many people are thinking that BTC will go lower (there is fear in the market) and that makes me more confident that BTW will go higher from now, because we only have seen some resting volume and a price decline, but this is after huge igniting volume, so there must come big Ending volume to end the uptrend, for now, I haven’t seen any of that.
I expect BTC to test the old support and 200-day MA at 9400 USD in the coming weeks.
What do you guys think?
Please leave a like and comment below if you enjoyed this post.
Greetings!
Today I took a good look at BTC.
First I want to share some information about volume with you because it is very important to understand how this can be viable information in trading.
There are three types of volume:
1: Igniting: Ignites a move in a new direction or continues and already strong/weak non-extended move.
2: Ending: Ends the current (extended) move.
3: Resting volume: Allows the stock to rest enough to continue its current move after a pause. Typically seen in consolidation breakouts/breakdowns.
I use these 3 types of volume to help discern when a stock might change direction or continue a move. Keep in mind, I am not only looking at volume, but I am also looking at support/resistance areas, how the stock arrived at its current location as well as the volume associated with the move. Lastly, on certain types of moves (especially climatic reversals), it is common to have both types of volume happening in succession.
Many people are thinking that BTC will go lower (there is fear in the market) and that makes me more confident that BTW will go higher from now, because we only have seen some resting volume and a price decline, but this is after huge igniting volume, so there must come big Ending volume to end the uptrend, for now, I haven’t seen any of that.
I expect BTC to test the old support and 200-day MA at 9400 USD in the coming weeks.
What do you guys think?
Please leave a like and comment below if you enjoyed this post.
Greetings!
Comment:
Also, there is a fractal with 2015 and the crossing of the 100 Week moving average and the 50 Week moving average
Comment:
I made the fractal between 2015 and now better visible
Comment:
Now we have a beautiful bottoming pattern, with this move down we have made a double bottom. I expect BTC to chop around in this area for some weeks and then when the moving averages cross on the weekly BTC can continue higher.
