BTC: 50 Week EMA is holding... for now
Another hammer candle to end the week. The volume is picking up slowly. Are we seeing a bottoming action or is it the last stop before dropping another 50%? Let's dig in a bit.
1. Moving Averages/VPVR: If price can hold this range for a couple of more weeks then things will start to look bullish again. The major VPVR cluster zone is providing support at the moment. Bulls do not want to see another retest of 29/28 k region. If that is to happen again, chances are the 50 week EMA will not hold. Bears would like to see a close below 50 week EMA. If that happens then I would look for support somewhere in 18/19 k zone where the next VPVR cluster support is. If price can see a daily close above 36k, then I would look for a retest of 21 week EMA or somewhere low to mid 40K.
2. Bollinger Bands: Bottom Bollinger band has been tested a few times with decent bounces. Bears will like to see it getting tested again as the bottom range is expanding. Bulls will like to see a test on the mid band. This week's close will tell us more which way the price will head for the next 3/4 months. If we see price action is getting comfortable at the bottom range and keeps tracking as the range is expanding, then bears will take the reigns.
3. ADX/DI: ADX is coming down as DI is leveling out. This somewhat indicates Price will level out as well. DI minus is still dominant, which gives the bears a upper hand. But as long as ADX keeps falling, Bulls can keep the hope alive that the worst is over and things will start ticking up again.
4. RSI: RSI is flattening out along with price action which can be a good indication that the momentum is getting reset. It is still too early to choose a direction of the next big move, but it is usually biased towards the last trend (up in this case).
The current price action is suggesting the probability of another massive dump is becoming less, but we cannot discount the possibility of that happening. Still on a wait and watch approach. First thing to see is a higher low/higher structure on 3 hour or 4 hour, and will go from there. Good luck out there.
1. Moving Averages/VPVR: If price can hold this range for a couple of more weeks then things will start to look bullish again. The major VPVR cluster zone is providing support at the moment. Bulls do not want to see another retest of 29/28 k region. If that is to happen again, chances are the 50 week EMA will not hold. Bears would like to see a close below 50 week EMA. If that happens then I would look for support somewhere in 18/19 k zone where the next VPVR cluster support is. If price can see a daily close above 36k, then I would look for a retest of 21 week EMA or somewhere low to mid 40K.
2. Bollinger Bands: Bottom Bollinger band has been tested a few times with decent bounces. Bears will like to see it getting tested again as the bottom range is expanding. Bulls will like to see a test on the mid band. This week's close will tell us more which way the price will head for the next 3/4 months. If we see price action is getting comfortable at the bottom range and keeps tracking as the range is expanding, then bears will take the reigns.
3. ADX/DI: ADX is coming down as DI is leveling out. This somewhat indicates Price will level out as well. DI minus is still dominant, which gives the bears a upper hand. But as long as ADX keeps falling, Bulls can keep the hope alive that the worst is over and things will start ticking up again.
4. RSI: RSI is flattening out along with price action which can be a good indication that the momentum is getting reset. It is still too early to choose a direction of the next big move, but it is usually biased towards the last trend (up in this case).
The current price action is suggesting the probability of another massive dump is becoming less, but we cannot discount the possibility of that happening. Still on a wait and watch approach. First thing to see is a higher low/higher structure on 3 hour or 4 hour, and will go from there. Good luck out there.
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