ALGO is currently changing the direction as it found nice support around past support areas.
I am bullishg if we see a daily close above fib 61.8 level. However, bitcoin price action will define the short term trend of ALGO as well. Need to consider.
We are inside the no trade zone in the green box in the flag. Wait until breakout is confimed. Higher probability to break to the downside obviously.
9550 - 9600 is my TP zone if we break to the downside.
When we have a look at the price action we see higher highs and higher lows in 4h TF in recent past.
However, volume is contradicting with the current trend, it is decreasing.
RSI is in line with the trend.
I want to see volume increasing or at least keeping the same level as we make HH and LH to say it is a health uptrend. Can't say that now.
In TA, an analyst tries to find out highest probability trades by looking at the previous price action and TA tools, most of the time a combination of those two.
In this chart I want to point out to the fact that btc/usd price and 21W EMA had a close relation in the past.
As you will see, this week we are re-testing the 21EMA and price will show us which way...
Algo is currently inside of a massive falling wedge pattern (bullish pattern). Volume is declining as we come closer to the breakout point as well.
Breakout traders will be waiting to enter positions once price break the resistance or support line. Breakout to the upside is more probable.
BTC already struggled to keep itself above 12k.
Now is the time to make a big correction imo.
What are the signs of a start of a reversal move :
- We have a CME Futures gap on 9670USD level
- We have a crystal clear bearish divergence on daily TF on RSI indicator (rsi length=14)
- We have a rising wedge which is a bearish chart pattern.
Possible time to enter...
- ADAUSDT is in a consolidation channel for 25 days now.
- Uptrend is still healthy: Holding 20EMA in its uptrend and inside the channel
- Stoch RSI is rising from oversold zone
- If we see a decisive move with volume and momentum above 0.15 USDT, then I would suggest you to get on to the train.
- next mid term resistance is at 0.199
descending triangle is coming to an end in ERDUSDT pair. And we have a higher probability to see a huge breakout to the downside.
when breakout happens, short if you can, if not wait for a reversal bullish candle from my pointed green support areas, in high TFs like 4h or Daily and then start accumulating for the next cycle.
and don't forget to,
ADAUSDT is forming a nice looking ascending triangle on the 4H TF.
A false breakout is possible so becareful before you open your positions. I suggest 2 candle close on 4H TF before entering the trade.