25/02/2019/11:00CET
We are back into the higher volatility price action with many asking is the bottom in? Let's take a look at the charts and see if we get some hints about this.
BTCUSD daily on Bitstamp
- Trading at 3771 USD at the moment after a rocket up to 4190 in the last 48 hours
- We burst out of our upper boundary of our descending channel in quite a powerful move toward 4k on monday and tuesday. There was a lot of euphoria that this was it now as we held ont to this gain.
- Then we had our rocket on saturday. For most this was the confirmation we are off to the races again! but...
- It was too much to quickly and we had another one of our, now familiar kick in the nuts!
Zoomed out a bit...
- Check out how we got rejected at the 4100 level. This is a well defined med term rs line having checked the market a few times already in the last 3 months. As one would expect, it was our line of resistance almost to a T.
- And beautifully found strong support at coincidence of the 21edma and 50sma and our descending channel boundary! This is the beauty of when TA comes together.
- I like the look of the support we are finding here at the moving averages. What I am looking for is the 21dema to hold and move us upward slowly toward the 4k again. This would be a nice base for the next burst.
- A breakdown below this descending line of support in the next 48h will be a bad sign and could signal a retest of the lows fulfilling the prediction that we need to double bottom. I have subscribed to this theory before.
- We are not out of the woods yet gentlemen. But we are putting in some higher lows now. We are missing the higher highs yet.
p.s. If I were a pension fund manager or other such investment company money manager, and we had had recent discussions about getting some small exposure to cryptos as a hedge (against the very difficult to read stock market and continuation of emergency monetary policies despite the fact no emergency is being acknowledged any more) then this chart setup we just looked at would definitely be accelerating my plans and putting an urgency under me to getting setup and get exposed to the market. With no ETF on offer yet, it means having to go into it bareback!
As always guys, leave comments, have fun and trade safe.