Hello everyone,
So the question stands, does bitcoin dump or pump in the near future? My guess… dump.
As a swing trader I focus on the Day and 4-hour timeframes. The biggest takeaways here are that MACD selling momentum and Price action (Volume going up, price going down) are now validating each other on the 4 hour and the daily timeframes. We can see that buying momentum has weakened and now we are seeing a potential MACD crossover on the daily. On the 4-hour, we can see that selling momentum is increasing as price is decreasing with no signs of waning selling momentum.
I also wanted to note that RSI on the daily timeframe is now showing bearish divergence. We made a lower high on RSI with a higher high in price.
So where should you look to enter back in? My guess would be that we test the 20 or 50MA on the daily timeframe before we begin another leg up or even a small bounce. Also something important to note is that the weekly timeframe has yet to test a 20, 50, or 200MA. During the 2017 bullrun, these MAs were tested quite a few times before price continued its way upwards.
If you found this to be helpful please leave a like or a comment. If you disagree please share your ideas. Be patient, use risk management techniques, and as always good luck trading.
So the question stands, does bitcoin dump or pump in the near future? My guess… dump.
As a swing trader I focus on the Day and 4-hour timeframes. The biggest takeaways here are that MACD selling momentum and Price action (Volume going up, price going down) are now validating each other on the 4 hour and the daily timeframes. We can see that buying momentum has weakened and now we are seeing a potential MACD crossover on the daily. On the 4-hour, we can see that selling momentum is increasing as price is decreasing with no signs of waning selling momentum.
I also wanted to note that RSI on the daily timeframe is now showing bearish divergence. We made a lower high on RSI with a higher high in price.
So where should you look to enter back in? My guess would be that we test the 20 or 50MA on the daily timeframe before we begin another leg up or even a small bounce. Also something important to note is that the weekly timeframe has yet to test a 20, 50, or 200MA. During the 2017 bullrun, these MAs were tested quite a few times before price continued its way upwards.
If you found this to be helpful please leave a like or a comment. If you disagree please share your ideas. Be patient, use risk management techniques, and as always good luck trading.