Key Levels to Watch 1 Year After BTC Broke Out from $20k
On the 1 Year Anniversary of Bitcoin's historic breakout from long standing resistance at $20k, let's zoom out to a 1 year chart to get some perspective with some help from basic technical indicators and a look at how liquidity is shifting in the order book with help from FireCharts 2.0 (beta) from materialindicators.com.
I'M NOT A FINANCIAL ADVISOR. Nothing I say should be considered financial advice. Trading is risky and you should never risk more than you can afford to lose.
A 1 year view of the chart reveals a potential rising wedge pattern which is typically bearish. All patterns are somewhat speculative until confirmed or invalidated so let's look at what it will take to confirm or invalidate the pattern. Bitcoin PA is currently pinned between 2 key technical levels which could help forecast what is going to happen next. Pick any crypto chart and load the 200 Daily Moving Average and the 21 Weekly Moving Average and see what has happened historically with price relative to those levels. Price is currently wedged between the 200 DMA and the 21 WMA. Full candle body closes above or below those levels are typically a good indication of what is going to play out next.
Another tool we like to look at is FireCharts from materialindicators.com
By looking at how huge ladders of bid liquidity are being moved up into the buy zone we have an indication that institutional players aim to get their bids filled and so far this week have been willing to sacrifice a bit of their cost basis to do it.
I'M NOT A FINANCIAL ADVISOR. Nothing I say should be considered financial advice. Trading is risky and you should never risk more than you can afford to lose.
A 1 year view of the chart reveals a potential rising wedge pattern which is typically bearish. All patterns are somewhat speculative until confirmed or invalidated so let's look at what it will take to confirm or invalidate the pattern. Bitcoin PA is currently pinned between 2 key technical levels which could help forecast what is going to happen next. Pick any crypto chart and load the 200 Daily Moving Average and the 21 Weekly Moving Average and see what has happened historically with price relative to those levels. Price is currently wedged between the 200 DMA and the 21 WMA. Full candle body closes above or below those levels are typically a good indication of what is going to play out next.
Another tool we like to look at is FireCharts from materialindicators.com
By looking at how huge ladders of bid liquidity are being moved up into the buy zone we have an indication that institutional players aim to get their bids filled and so far this week have been willing to sacrifice a bit of their cost basis to do it.