🚨ON BALANCE VOLUME INFOGRAPHIC
Why do we like On Balance Volume (OBV)?
It can often be a LEADING factor of price action (Volume precedes price).
Notice OBV leading price here and even breaking out prior to the price break out, leading to a beautiful move to the upside.
Directional Movement Indicator is historically very reliable for clues on trend direction.
I separated the indicator into two parts down below to make it easier to view.
Currently the indicator shows us in bearish/neutral territory.
Long term it's showing extremely bullish trend.
More notes in the chart:
With last week's close Top Goon X confirmed a "strong sell approaching" alert.
This is only the third time the alert has been given on the weekly time frame.
Top Goon X is an indicator developed to read bullish/bearish trends and warn of reversals.
If we're in a bear market, we could expect to see Bitcoin revisit sub $20,000 one more time before it's eventual move to over $200,000.
Possible targets are $17,000 and $8,900.
I'd expect a very strong rebound if price reached $8,900 and I think the next month would be the biggest green candle in Bitcoin's history.
What could trigger the next parabolic bull run?
A monthly close above $13,900.
Historically when BTC closes above the previous ATH close it rises an average of 4,000% in 182 days.
A conservative valuation based on previous cycles would make 1 BTC worth over $76,000.
The most bullish thing Bitcoin can do right now is correct back to $40k levels
During 2017 bull market exactly 217 days after the 0.382 fib retest from the previous ATH we saw a 30% correction
We're now exactly 217 days from 0.382 fib retest of the previous ATH.
A dip would be an absolute gift. I would expect an extremely parabolic move to follow if a dip occurs.
The last day of each month has closed red in a tight range almost every month since December. The one green close was a doji.
BTC price tends to see a small drop prior to a bullish move to start the month. Interesting to see if the pattern continues.
Looks like BTC is developing a bullish descending channel. Great for the future, not great for the present.
Rejection of my EMA's will likely see us drop to new local lows.
I'm still hoping to see my long term LTC target of $18 which would match up well with a drop on BTC to $2900.
My indicator is showing a "strong buy approaching" signal on Litecoin's weekly chart.
The "support buy" is not based off the indicator. It's more of a level I may consider buying as a support level. It's a logical bounce spot if I were just using PA to chart.
The two lower levels are conditions set by the rules of my indicator. The 0.786 fib level is typically a...