Bitcoin Defies Historical Behaviour & Bearish Indicators
G'day friends! Well Bitcoin has broken out to a new high above the recent Cryptonite price cycle which indicate we have at least another upward moving price cycle ahead of us. On rare occasion you get a fake out but having closed above the green line is a reliable indication of the next upward price cycle.
The problem with most people is they expect themselves to be right all the time. They like to predict. They bind their ego to their opinion. In trading we can afford none of these things. Its not about being right or wrong, we should never listen to anyone's long-term predictions. Trade what you see in front of you. Have an exit strategy before you trade.
So back to the chart... The red arrows (or you may see boxes) indicate the highest number of transactions per day in Bitcoin history with the exception of the top of the 2017 bull run. This was a very bearish statistic strongly suggesting distribution (profit taking). Additionally, the NVT daily was screaming top (although the weekly is bullish thus we had anticipated a pull back and then continuation of bull). Additionally, we still see an ascending wedge which could prove bearish, yet to see. However, having broken through to the new high in the Cryptonite price cycle model, and more especially, having broken through the 50 week moving average yesterday, plus if we hold today (two consecutive days over the 50 week moving average), thats historically a confirmation of the new bull market. If we close below the 50 week moving average then that's a sign of rejection, weakness and bearish price action to follow. Simple, clean rules. Clarity is power! May the 4th be with you!
Judd Armstrong
***This info is not a recommendation to buy or sell. It is to be used for educational purposes only. Make logical sound decisions for yourself by risking only what you’re willing to lose. It’s on you. ***
The problem with most people is they expect themselves to be right all the time. They like to predict. They bind their ego to their opinion. In trading we can afford none of these things. Its not about being right or wrong, we should never listen to anyone's long-term predictions. Trade what you see in front of you. Have an exit strategy before you trade.
So back to the chart... The red arrows (or you may see boxes) indicate the highest number of transactions per day in Bitcoin history with the exception of the top of the 2017 bull run. This was a very bearish statistic strongly suggesting distribution (profit taking). Additionally, the NVT daily was screaming top (although the weekly is bullish thus we had anticipated a pull back and then continuation of bull). Additionally, we still see an ascending wedge which could prove bearish, yet to see. However, having broken through to the new high in the Cryptonite price cycle model, and more especially, having broken through the 50 week moving average yesterday, plus if we hold today (two consecutive days over the 50 week moving average), thats historically a confirmation of the new bull market. If we close below the 50 week moving average then that's a sign of rejection, weakness and bearish price action to follow. Simple, clean rules. Clarity is power! May the 4th be with you!
Judd Armstrong
***This info is not a recommendation to buy or sell. It is to be used for educational purposes only. Make logical sound decisions for yourself by risking only what you’re willing to lose. It’s on you. ***