With a market as volatile as bitcoin, I like to have several reasons for a technical view and I now believe there is enough on the chart to suggest a period of consolidation and recovery.
So what am I looking at? Well for me there are 3 factors to consider, the first is that the daily RSI has not confirmed the new low reflecting a loss of downside momentum. i.e. price made a new low, but the indicator did not. BTW I use a 9-period RSI by default. I know some use 14 and some others even a 7 period, but for me this is my go to number, I find it sensitive enough without giving too many false signals.
The second factor is that the market has sold off to its 55-week moving average at 45398, and the third is that we have reached a band of support on the weekly chart, provided by ichimoku clouds. For those not familiar with cloud analysis it is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future. I know it makes a chart look busy and even a little intimidating but once you start to think about it being just a bunch of moving averages it becomes easier to deal with.
So in summary I favour a recovery off this band of support and once we get through approximately 52000 we should see the market react higher towards its 55-day ma at 57570 currently.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
So what am I looking at? Well for me there are 3 factors to consider, the first is that the daily RSI has not confirmed the new low reflecting a loss of downside momentum. i.e. price made a new low, but the indicator did not. BTW I use a 9-period RSI by default. I know some use 14 and some others even a 7 period, but for me this is my go to number, I find it sensitive enough without giving too many false signals.
The second factor is that the market has sold off to its 55-week moving average at 45398, and the third is that we have reached a band of support on the weekly chart, provided by ichimoku clouds. For those not familiar with cloud analysis it is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future. I know it makes a chart look busy and even a little intimidating but once you start to think about it being just a bunch of moving averages it becomes easier to deal with.
So in summary I favour a recovery off this band of support and once we get through approximately 52000 we should see the market react higher towards its 55-day ma at 57570 currently.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
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