On the daily chart (left), we can see that the bullish divergence played out, pushing price above the downward channel.
On the monthly chart (right), we can see that there is significant hidden bullish divergence, as the price has gone up, the RSI has gone below 50, and is now back above 50.
If inflation has peaked (need to confirm inflation data for the next...
The DXY appears to be in a cool-down period right now. As I mentioned in my post from a couple weeks ago, we can see the bearish divergence playing out on the weekly time frame. A confirmed breakdown would be the RSI breaking below the upward channel, which would cause a multi-week downtrend or long-term consolidation period.
BTC has been trading in this channel since mid-June. I think it is definitely possible to see a move up to $25K - $30K in the coming weeks. Currently, I'm looking for another buy setup, either at the bottom of this large channel, or a possible break upwards from this smaller correction.
If we see a move below $20,700, then that would be a lower low, which signals...
Quick update on APE. As most of you know, ETH has been leading the crypto market in the last week or two, which has pumped some altcoins 100%+.
There has been some bullish news lately, such as GUCCI accepting APE for payments, and headlines such as, "One of the Richest Ethereum Whales In Existence Accumulates Polygon, APE, Sandbox..."
If APE is able to break...
1) Weekly RSI is showing bullish divergence in play.
2) Weekly MACD just crossed up.
3) One of the major trend lines just broke upward.
4) US10Y is showing a possible H&S in play.
5) DXY is showing bearish divergence on the weekly chart (see my post below).
After a parabolic run up this past year, the DXY is starting to show a similar sign to what happened in 2008 - 2009. As we can see on the weekly chart, the DXY is making higher highs with lower highs on the RSI, signaling a possible move to the downside.
A lot will depend on economic conditions in the coming months, but I believe the DXY could follow a similar...
Looking at the 3-day chart, we can see that BTC has been heavily oversold. We also just got an upward cross on the MACD which usually results in a rally.
In my opinion, the only way the trend would shift to a new bull cycle is if that upper trend line gets broken and BTC starts making higher lows.
There is still a lot of uncertainty in the markets, and it would...
The Pi Cycle Bottom Indicator has proven to be quite accurate in calling the bottoms for both the 2015 and 2018 bear markets. Usually when this happens, it is followed by a multi-month consolidation phase, which then launches a parabolic bull run.
What exactly is the Pi Cycle Bottom Indicator?
This indicator flashes when the 471-day SMA and the 150-period EMA...
Since the beginning of May, this is the first time that APE Coin has risen above the 20-day SMA. After a 90% drop in the last couple months, APE is showing strong signs of upward movement recently.
Strong local resistance at around $5.80 - $6.
Watch for a possible break above the 50-day SMA in the coming weeks.
RSI on the weekly is at a record-breaking low. Lower than March 2020 and the 2018/2019 bear market.
I see one of 3 scenarios playing out here:
1) $20K is the bottom and we go into a sideways accumulation phase for a while.
2) BTC bounces up to the top of the channel for wave 4, gets rejected, and falls down to $12K - $14K.
3) $20K support completely fails now...
The global markets are getting nuked. DXY just broke 105 resistance, FED rate hikes are seeing no end in sight, and the SPX is approaching the 200W MA. I think we can easily see at least another 5% - 7% drop before any significant move up.
Weekly RSI is very oversold.
Two moving averages that I am keeping my eye on are the 200-week MA (we just hit that), and the 50-month MA ($21K).
RSI levels on both the weekly and monthly charts have not seen levels this low almost ever. The weekly RSI is lower than 2018's bear market and the COVID 2020 crash.
Also, given the fact that the DXY just broke major resistance at 105, I see no end...
The global markets are hurting. We can clearly see on the monthly chart that the DXY has broken resistance at 104-105. We have not seen levels like this since 2000 - 2002.
I would say that given the current economical conditions and the technical analysis of what the monthly charts and RSI are showing us, there is a chance that the DXY will revisit resistances of...
ETH looks to be heading to test the previous ATH from early 2018 at around $1,400. The 200W MA sits at $1,200, which is why I have those two targets in mind for this correction.
Weekly RSI is extremely oversold too and is near levels from the bottom of the 2018 bear market.
On the 4H chart (and other timeframes), we can see bullish divergence forming where the price action is heading lower and the RSI is making higher lows. This could be a sign of a small reversal coming soon.
Currently, the 4H 50MA (orange line) is acting as resistance, so if we get above that, that would be a good start for a move up.
Support is at $5.20. A break...