(!) BTC - CRUCIAL remarks on current Bitcoin price
Hi guys, in my previous post, I guided you all the way to and through the break-out and what we were looking out for. I now want to point your attention to a couple of CRUCIAL things that you have to be aware of. I will continue explaining the chart with Heikin Ashi candles – if you read my previous post you will probably already know how it works, if not no worries I’ll re-explain very quickly where possible.
1. The daily chart
Compared to our last chart before the actual break-out, I argued we needed to break through the white “3” resistance line and the inverse head & shoulders neckline (see 4-hourly chart). In the mean time all of that happened and some of us already have a smile on their face ;-)
Previous chart before the break-out (last post):
Now, look at the RED line (“3”) and how BTC is banging against the red wall. This is an important resistance line as you will also see occurring on the four hourly!
What else: the MACD made a beautiful golden cross and RSI is showing positive momentum.
2. 4-hourly
Have a look at this chart. Most important remarks here: the green Heikin Ashis have evolved into a red doji candle. This is a trend reversal! (doji / spinning tops in Heikin Ashi candles are typical for trend reversal signaling). Price indeed hits the red resistance line as mentioned above, and is bouncing back down! This is the start of a down movement on the 4-hourly.
And this is confirmed by the MACD (blue will cross red and come under it), RSI is overbought and curving downward. If you want to take some profit and get back in later, now is the time. We typically woud wait for at least one red candle though to confirm breaking this short term support.
3. The weekly!
Now it gets interesting. We see all the same lines as above, but zoomed out on the weekly chart. Once again, we see a Heikin Ashi spinning top, hinting to a potential trend reversal! We see that a death cross was made in the MACD before and we have experienced that in Bitcoin price in the last weeks. Now we see that RSI is curving up and who knows we might even see the blue line of the MACD curving up to bring back the real bullish momentum.
Very important: If we can get a green candle on the weekly, we might be in for a bullish treat soon.
Conclusion: review these three levels of detail: the weekly, the daily, and the 4-hourly.
The 4-hourly shows us a bounce back downward in the short term.
The daily is struggling with the red resistance line, which is a strong attention point.
The weekly is craving for a green candle, which would theoretically be quite near, based on the Doji and be a signal of some real bullish momentum.
5 important cents on Bitcoin ;-)
1. The daily chart
Compared to our last chart before the actual break-out, I argued we needed to break through the white “3” resistance line and the inverse head & shoulders neckline (see 4-hourly chart). In the mean time all of that happened and some of us already have a smile on their face ;-)
Previous chart before the break-out (last post):
Now, look at the RED line (“3”) and how BTC is banging against the red wall. This is an important resistance line as you will also see occurring on the four hourly!
What else: the MACD made a beautiful golden cross and RSI is showing positive momentum.
2. 4-hourly
Have a look at this chart. Most important remarks here: the green Heikin Ashis have evolved into a red doji candle. This is a trend reversal! (doji / spinning tops in Heikin Ashi candles are typical for trend reversal signaling). Price indeed hits the red resistance line as mentioned above, and is bouncing back down! This is the start of a down movement on the 4-hourly.
And this is confirmed by the MACD (blue will cross red and come under it), RSI is overbought and curving downward. If you want to take some profit and get back in later, now is the time. We typically woud wait for at least one red candle though to confirm breaking this short term support.
3. The weekly!
Now it gets interesting. We see all the same lines as above, but zoomed out on the weekly chart. Once again, we see a Heikin Ashi spinning top, hinting to a potential trend reversal! We see that a death cross was made in the MACD before and we have experienced that in Bitcoin price in the last weeks. Now we see that RSI is curving up and who knows we might even see the blue line of the MACD curving up to bring back the real bullish momentum.
Very important: If we can get a green candle on the weekly, we might be in for a bullish treat soon.
Conclusion: review these three levels of detail: the weekly, the daily, and the 4-hourly.
The 4-hourly shows us a bounce back downward in the short term.
The daily is struggling with the red resistance line, which is a strong attention point.
The weekly is craving for a green candle, which would theoretically be quite near, based on the Doji and be a signal of some real bullish momentum.
5 important cents on Bitcoin ;-)
Kommentar:
And YES: our Heikin Ashi doji did it again - there we have a first green candle on the weekly! This is bullish stuff. Based on this relatively simple figure (unless you have to calculate it all yourself :-D ), we can actually theoretically expect more bulls to get on this ride.
Kommentar:
Note that on the 4-hourly, we are seeing price still struggling with the green horizontal Fibonacci 50% as a resistance.We can consider the red line beneath as a support for now. For now, this is something to pay attention to.
Note that on the daily, everything is still looking fine; BTC will TRY to break that resistance soon.
Note that on the daily, everything is still looking fine; BTC will TRY to break that resistance soon.
How to do this yourself in Tradingview: Go to the field where you normally enter the ticker, and look two icons on the left, where you see the candle stick format. Click on it and pack the fourth one: "Heikin Ashi". Then look at the first icon on the left of the ticker, and choose "D" (daily). You can now see the same graph (albeit without all the lines etc.) ;-)