If you notice my chart on 3/7 I gave you the call we were headed down when we were at $10,700 and we dropped to around $8400. A savings of around 20%!! I pointed out several key indicators to show support for this and today we will be looking at the same indicators to see if we have an idea on where we are headed next.
First we can see that BTC has broke what was previously our major support line and this is now acting as the resistance. Currently as I am typing this, We have broke through the resistance line within the past 30 mins which is a good sign.
Looking at the DMI we can see that the is still high showing us we are in a strong trend, and the +DM is working its way up (and is ever so close) to crossing with the -DM. IF they cross this would be a good buy signal. The has crossed and is turning up and the is producing higher lows.
All signs are look good as we speak but the next few hours will be critical to see if: 1) BTC close above the current resistance line. 2) The +DM cross the -DM. 3) The to stay above 50.
IF I get 15 likes I will post an update on 3/14!
JUST for fun, I referenced 3 song titles in this post by one band... do you know the band?
Happy Trading :)
*all comments are welcome*
***This information is not a recommendation to buy or sell***
Just for reference, since 2/13 we have had 4 crossovers on the DMI, all leading to significant movement in the charts. There is always a possibility of a failed breakout (the DMI will cross back and we will begin to fall), however looking at the recent past this is a very positive sign.
Looking at the DMI, the ADX has fallen below 25 showing no significant trend is in place, and the RSI is still producing lower lows. The -DM is still on top but leveling out with the +.
So, could we still break down to 6k? Possibly, but for the moment we are holding steady.
Any moment above or below the flag will be a good indication as to which way we will go.