Smooth Bitcoin, Preps To Tap The Pink — Trendline (BTC)
My friends, my peeps, my family of crypto lovers, welcome to this oh-so-scrumptious, fantastical analysis on BITCOIN! Let's jump right in. Well, well, well. BTC keeps climbing Mount Lambo, just like your boy Magic told you it would. If you recall from the last analysis, I said "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." As you can see, we're almost there. BTC is within striking distance, of the top of the channel. Where we go from here, will be critical for BTC, and it will be critical for the rest of the market. I use BTC as a barometer on the crypto space, and I want to see it break above this channel. Above that, the heavy resistance at the 50 EMA ($12,785) will be extremely critical. If we surpass that level, the return of the bull will be undeniable. As you know, I've been bullish since the market reversed off of my downside targets, which happened to be the floor in the market. But until BTC gets above the downtrend channel, and particularly, the heavy resistance level, I can't technically say that a new bull market has begun. Sure we've made some nice progress, but as it stands, BTC is still inside of a huge downtrend channel. I am bullish, but now it's crunch time. Now I want to see the evidence, to confirm the bull case, because if it doesn't, you know Magic will put the bear mask back on. Let's look at the chart now, and assess the technicalities.
We can see that BTC has actually surpassed the 61.8% retracement, and has reversed to test it as support. Currently, that level appears to be holding, as a small red candle pushes down into it. We may continue to test that level for a few hours, but I think the big test of the top of the pink channel is right around the corner. The price action is progressive, but not parabolic. It shows that the market is stair-stepping higher, and that is indicative of sustainability. I do think that we may see an initial negative reaction at the top of the channel. I'm sure that a lot of sellers have placed their sell orders there. So I won't be surprised if we pull back from the initial touch. However, the 200 EMA (in purple) and the 50 EMA (in orange) are just below. Yesterday, we noted the support that BTC confirmed on the 200 EMA, so I would imagine those levels would continue to be supportive. If we get a negative reaction, and those levels start to fall, that would be a yellow flag. If the green dashed trendline falls, that will be a red flag sell signal. That's a bit of worst case scenario analysis, but it's also less likely, in my opinion. I think that we are likely to see a breakout, as new enthusiasm continues to build in the crypto space. However, I NEED EVIDENCE. I want to see it on the charts. My thoughts, my suppositions, my emotions, are dead. All I care about, is the data in front of me. If BTC pops above that pink line, it will tickle my fancy. Stay sharp, stay nimble, and let the market show us the way. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
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-
We can see that BTC has actually surpassed the 61.8% retracement, and has reversed to test it as support. Currently, that level appears to be holding, as a small red candle pushes down into it. We may continue to test that level for a few hours, but I think the big test of the top of the pink channel is right around the corner. The price action is progressive, but not parabolic. It shows that the market is stair-stepping higher, and that is indicative of sustainability. I do think that we may see an initial negative reaction at the top of the channel. I'm sure that a lot of sellers have placed their sell orders there. So I won't be surprised if we pull back from the initial touch. However, the 200 EMA (in purple) and the 50 EMA (in orange) are just below. Yesterday, we noted the support that BTC confirmed on the 200 EMA, so I would imagine those levels would continue to be supportive. If we get a negative reaction, and those levels start to fall, that would be a yellow flag. If the green dashed trendline falls, that will be a red flag sell signal. That's a bit of worst case scenario analysis, but it's also less likely, in my opinion. I think that we are likely to see a breakout, as new enthusiasm continues to build in the crypto space. However, I NEED EVIDENCE. I want to see it on the charts. My thoughts, my suppositions, my emotions, are dead. All I care about, is the data in front of me. If BTC pops above that pink line, it will tickle my fancy. Stay sharp, stay nimble, and let the market show us the way. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
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-
Komen:
Correction: Above that, the heavy resistance at the 50% retrace*** ($12,785)
Komen:
BTC has just made contact with the top of the pink channel, and has pierced it slightly. There doesn't seem to be much immediate selling, which tells me that there weren't a lot of sell orders waiting there after all. Perhaps the sellers are truly drying up. Either way, that's an interesting thing to see.
Komen:
AND THERE IT IS! BTC HAS BROKEN ABOVE THE DOWNTREND CHANNEL!!! =D =D =D
Komen:
Correction: The origin of my pink trendline was barely off, and not making contact with the exact top of the all time high. This altered the trajectory of my trendline. I only noticed it when I zoomed in very close. In fact, BTC has not yet crossed the pink trendline. It has only touched it.
-Magic-
-Magic-