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The price of Bitcoin has generated some doubts in many people, who make analysis about the possibility that the currency is changing its trend or is simply making a new correction.
There are several ways to determine this, each person chooses the one he/she feels most comfortable with according to his/her way of operating.
My favorite is the crossover of moving averages, as it gives me an earlier detection in any seasonality.
As I am doing analysis almost weekly, I prefer to work with 1 day and 4 hours temporalities, not less, as they introduce a lot of "noise" to the analysis.
In this case the crossing of the price over the 50-day moving average (which occurred yesterday) would be the first signal, but the second signal, let's call it "confirmation", would be the crossing of the 21-day moving average over the 50-day moving average, this has not happened yet, so we could be in the presence of a correction only, to continue going down.
This situation does not prevent us from having short-term opportunities to take some profits from those positions we accumulated in 30 and 28K.
Inter-day operations and/or for those who like "scalping", but in any case it would only be a small percentage of our total portfolio, as they would be giving us today a return of approximately 28% in 5 days. not bad.
Also keep in mind that we have been in a sideways or range trend for 3 months now between 41k and 30K, so it is still too early to say that the newly confirmed downtrend was reversed. what has happened technically speaking is a FAKE OUT or "bear trap", (so far) to get back into the upper part of the range. will we get through it?
I will be watching throughout the week and will update as any major movement occurs.