Hello friends! Welcome to this update analysis on BITCOIN! Let's jump right in. Looking at the four hour BTC chart, we can see that after the breakout of the bull flag, BTC ran straight up to the 61.8% retrace and got stopped cold. Since then, BTC has done something very interesting. It actually turned right back down, and touched the 200 EMA (in purple,) where it found nice support — forming a dragonfly doji candle in the process. For those of you who don't know, dragonfly dojis are bullish reversal signals. You can see that the current follow-through candle is green, confirming this reversal off of the 200 EMA. This is a really nice thing to see. The 200 EMA is a powerful level, and we've just confirmed it as support. BTC needs to remain above it now, and continue it's trek higher. I still believe that a test of the top of the downtrend channel is inevitable. It's pretty unlikely that we would get this close, to such an important level without testing it, but anything is possible. Regardless, BTC is still making forward progress, and that's all that matters. So, where do we go from here? Well, BTC could continue to trade sideways, to slightly higher, as it consolidates the massive run that has just taken place. Look for the 200 EMA to remain supportive. You can see that the 50 EMA (in orange) is quickly rising toward the 200 EMA. If/when they converge, it will form a powerful support level. Looking at the MACD, you can see that it has crossed over bearish, but the momentum is weak. Overall, I'm targeting an impending test of the top of the downtrend channel. The support at the 200 EMA is a bullish and encouraging development. Should a break above the top to the downtrend channel occur, the big upside target (12,187) would be in play. Good luck trading, everyone!
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-