ALERT! There is a possible convergence of indicators that could be telling us we're about to pivot hard to the down side. Please take this with a grain of salt, because a rising BTC could completely nullify the indicators that I am looking at. But just be aware that it is *possible*. Here's what I see...
Please forgive all of the messy lines on this chart, and just focus on the Orange 3.618 fib circle ring. By the way, this is based on the 1-day chart, so it might take a while for this to play out. Notice that right after we passed the Orange 3.618, the very next candle on the daily chart is looking red. If we round out February 7th and close this day with a red candle, I think we are going to pivot. The reason is, on the Stochastic, the fast line (blue) has just touched the slow line (red). It hasn't crossed yet. But if we close February 7th on a red candle, that fast line is going to cross over.
There HAVE been times in the past where the stochastic lines touch and start to look like they're going to cross over, and then another surge happens giving it a secondary "hump" above the overbought boundary before reversing direction. We saw that happen in October of 2019. That's why I say it is DEFINITELY possible that Bitcoin could prop up XRP and cause a secondary bounce, thus wiping out this potential pivot to the down side. But with the volume on the decline, I've got to raise the yellow "caution flag" and warn of the possibility of a reversal.
Again, take this with a grain of salt. This market is NOT predictable. Even when we have ALL of the indications staring at us right in the face (like we have RIGHT NOW) telling us that we are on the brink of a power move or a dive, the cryptos can make fools of us and do the exact opposite. So just look at this as an alert of a *possible* move, and please remember this is NOT financial advice. Entertainment purposes only!
Carlton Flowers
The CryptoPro
Please forgive all of the messy lines on this chart, and just focus on the Orange 3.618 fib circle ring. By the way, this is based on the 1-day chart, so it might take a while for this to play out. Notice that right after we passed the Orange 3.618, the very next candle on the daily chart is looking red. If we round out February 7th and close this day with a red candle, I think we are going to pivot. The reason is, on the Stochastic, the fast line (blue) has just touched the slow line (red). It hasn't crossed yet. But if we close February 7th on a red candle, that fast line is going to cross over.
There HAVE been times in the past where the stochastic lines touch and start to look like they're going to cross over, and then another surge happens giving it a secondary "hump" above the overbought boundary before reversing direction. We saw that happen in October of 2019. That's why I say it is DEFINITELY possible that Bitcoin could prop up XRP and cause a secondary bounce, thus wiping out this potential pivot to the down side. But with the volume on the decline, I've got to raise the yellow "caution flag" and warn of the possibility of a reversal.
Again, take this with a grain of salt. This market is NOT predictable. Even when we have ALL of the indications staring at us right in the face (like we have RIGHT NOW) telling us that we are on the brink of a power move or a dive, the cryptos can make fools of us and do the exact opposite. So just look at this as an alert of a *possible* move, and please remember this is NOT financial advice. Entertainment purposes only!
Carlton Flowers
The CryptoPro