Bitcoin | Moving Averages & Volume

29. Aug.

Good day my fellow trader, I know it is early in the morning so we will keep this one a short and easy read. We will focus on basic TA based on the Exponential Moving Averages (EMAs) and we will use volume to support these signals.

Let's use the classic left side vs the right side:

1) In October 2023, Bitcoin was sideways as it traded below all the listed moving averages. As soon as it moved above these moving averages, it turned bullish, the highest volume in many months came in and prices start to grow.

2) In early 2024, Bitcoin was sideways as it traded above all the listed moving averages. As Bitcoin moved to trade below these moving averages, the bearish bias started to be reinforced. This month, August 2024, as Bitcoin moved and closed below all the EMAs, it also produced the highest bearish volume since November 2022. This can signal can easily precede a major price drop.

➢ Just as a high volume move above the EMAs confirmed the bullish trend, a high volume move below the EMAs confirms a bearish trend.

➖ The EMAs listed go as follows: 8, 13, 21, 34, 55, 89 & 144.
➖ The highest being around $62,100, the lowest $60,800.

Based on what I am seeing now, there can be a small bounce to this range before the next leg down. This would put the last lower high at 65K followed by a new one at 62K and crash.

Namaste.