In the past few days/weeks the market has been in a scary downtrend that has created a lot of fear among retail traders and many have sold. This movement to the down side in my opinion and the opinion of many is based on the manipulation by the whales in order to get BTC at a better price and to buy up retail traders coin. In order to make money in this market it is important to think like a whale and trade inversely to the mainstream media and news, as they use the fear of the retail trader to get them to sell so they can buy, as well as using the retail traders greed to get them to buy at the top as they feel as if the market is invincible, but in fact the whales will then sell their coin. The cycle then repeats.
From a technical standpoint there are many signs of confluence that back the bulls as a high possibility in the short term. #1 confluence indicators is represented by the break out of the short term downtrend we have been in for the past couple days/weeks (represented by trended white lines.).
#2 confluence, RSi is below 50 which gives us a lot of space for a big move when volumes come in. #3 confluence, The break out of the Bollinger bands on the daily chart set on 1 standard deviation (which is a shorter term deviation indicators, the higher the deviation the longer the time frame .). #4 confluence, A pinching support and resistance is currently in play between the support of the Bollinger bands (previous resistance) and the 0.382% fib level. This pinch gives BTC no time to consolidate and forces the price to make a decision and I feel the break is more likely to break to the bulls based on the confluences explained above.
There is also one negative confluence indicator that brings a bit of fear in my mind and that is the MACD which has had a huge run on the daily and due to being so overextended there's a chance it will have a reversal resulting in a divergence which will represent a retracement in the short term. I think its more likely that the MACD will reverse and the market could consolidate due to there being to much confluence backing the market hitting a bottom.
Thank you, feel free to leave your opinion, would be appreciated.
From a technical standpoint there are many signs of confluence that back the bulls as a high possibility in the short term. #1 confluence indicators is represented by the break out of the short term downtrend we have been in for the past couple days/weeks (represented by trended white lines.).
#2 confluence, RSi is below 50 which gives us a lot of space for a big move when volumes come in. #3 confluence, The break out of the Bollinger bands on the daily chart set on 1 standard deviation (which is a shorter term deviation indicators, the higher the deviation the longer the time frame .). #4 confluence, A pinching support and resistance is currently in play between the support of the Bollinger bands (previous resistance) and the 0.382% fib level. This pinch gives BTC no time to consolidate and forces the price to make a decision and I feel the break is more likely to break to the bulls based on the confluences explained above.
There is also one negative confluence indicator that brings a bit of fear in my mind and that is the MACD which has had a huge run on the daily and due to being so overextended there's a chance it will have a reversal resulting in a divergence which will represent a retracement in the short term. I think its more likely that the MACD will reverse and the market could consolidate due to there being to much confluence backing the market hitting a bottom.
Thank you, feel free to leave your opinion, would be appreciated.