Bitcoin flash crash! Time to panic? Not yet!
General Intro:
- Bitcoin is the first of its kind as cryptocurrency using blockchain technology and is looked at a store of value like gold , just better.
- Bitcoin will help the people to bank themselves and gives some power back to the community.
- The whole crypto market follows in some way the movements of the Bitcoin price while being much more volatile.
Comments:
- Today we look at the weekly timeframe to reevaluate the current situation for Bitcoin and therefore for the whole market.
- We do see that once the bull market support band (green line is the 20 weeks simple moving average and red line is the 21 weeks exponential moving average) we dropped further down and even passed the 50MA.
- However, we did find support around 40k$ and recovered back to 47k$ where we now wiggled around for most of the day.
Why we should not panic yet:
- Technically we still could go up above 52k$ for the weekly close and the bull market support band would have held.
- We are currently above the 50MA. Once we cross the 50MA we have to reconsider things again and possibly turn bearish.
- The last >200 days basically represent a large consolidation phase where we move between the two thick green and orange price lines (between 30k and 63k).
- Fundamentals did not change and the reserves on the exchanges continue to drop.
Daily chart:
- Price shows a flash crash down to around 40k$ depending on the exchange you are looking.
- Volume is on a steady decline since Mai. This supports the idea that we are in a large consolidation and accumulation phase.
- RSI analysis shows that we are in some sort of consolidation between the yellow lines.
- Moving Average: Currently we are below the 20MA and above the 50MA which can be considered a due or die situation.
- Fibonacci levels show that we are currently hovering above the 0.5 which technically is still bullish.
- Support lines are at 41k$ and 30k$.
- Resistance lines are around 63k$. Afterwards we are free to fly.
Expectation:
- We currently expect the price to go up towards the 53k$ line within this week to technically hold the bull market support band.
- If we can't hold the bull market support band it seems likely that we retest the 50MA again in the near future.
Basic rules:
- Never buy the top/ ATH
- Take profit as long as you can (also partial profit is profit)
- Use Stop/loss for leveraged positions
- If you are not experienced, don't leverage in the first place
Enjoy the ride and don't be too greedy.
If you like the content, please like, comment and give this channel a follow.
We would love it if you could share your thoughts in the comments.
Discussions are very welcome here.
Always do your own research and keep in mind that my charts and comments cannot be considered financial advice.
Cheers
ps.
Chart explanation:
Main lines:
- Green lines are tested support lines.
- Orange lines are resistance lines or, if we are above, possible support lines which were not tested yet.
- Cyan line is for volume trendline.
- White lines are Fibonacci retracement levels
Helplines:
- Purple lines are trendlines we take a look at.
- Blue, green, white and pink lines are 200MA, 100MA, 50MA and 20MA.
- The bull market support band showing a green line representing the 20 weeks simple moving average and a red line representing the 21 weeks exponential moving average
- Yellow lines are for visual help only.
Specials:
- Boxes represent either entry zone or support zone . Check the description.
- Cameras represent MA crossings. Yellow camera stands for a golden cross while the cyan camera stands for a death cross.
- Bitcoin is the first of its kind as cryptocurrency using blockchain technology and is looked at a store of value like gold , just better.
- Bitcoin will help the people to bank themselves and gives some power back to the community.
- The whole crypto market follows in some way the movements of the Bitcoin price while being much more volatile.
Comments:
- Today we look at the weekly timeframe to reevaluate the current situation for Bitcoin and therefore for the whole market.
- We do see that once the bull market support band (green line is the 20 weeks simple moving average and red line is the 21 weeks exponential moving average) we dropped further down and even passed the 50MA.
- However, we did find support around 40k$ and recovered back to 47k$ where we now wiggled around for most of the day.
Why we should not panic yet:
- Technically we still could go up above 52k$ for the weekly close and the bull market support band would have held.
- We are currently above the 50MA. Once we cross the 50MA we have to reconsider things again and possibly turn bearish.
- The last >200 days basically represent a large consolidation phase where we move between the two thick green and orange price lines (between 30k and 63k).
- Fundamentals did not change and the reserves on the exchanges continue to drop.
Daily chart:
- Price shows a flash crash down to around 40k$ depending on the exchange you are looking.
- Volume is on a steady decline since Mai. This supports the idea that we are in a large consolidation and accumulation phase.
- RSI analysis shows that we are in some sort of consolidation between the yellow lines.
- Moving Average: Currently we are below the 20MA and above the 50MA which can be considered a due or die situation.
- Fibonacci levels show that we are currently hovering above the 0.5 which technically is still bullish.
- Support lines are at 41k$ and 30k$.
- Resistance lines are around 63k$. Afterwards we are free to fly.
Expectation:
- We currently expect the price to go up towards the 53k$ line within this week to technically hold the bull market support band.
- If we can't hold the bull market support band it seems likely that we retest the 50MA again in the near future.
Basic rules:
- Never buy the top/ ATH
- Take profit as long as you can (also partial profit is profit)
- Use Stop/loss for leveraged positions
- If you are not experienced, don't leverage in the first place
Enjoy the ride and don't be too greedy.
If you like the content, please like, comment and give this channel a follow.
We would love it if you could share your thoughts in the comments.
Discussions are very welcome here.
Always do your own research and keep in mind that my charts and comments cannot be considered financial advice.
Cheers
ps.
Chart explanation:
Main lines:
- Green lines are tested support lines.
- Orange lines are resistance lines or, if we are above, possible support lines which were not tested yet.
- Cyan line is for volume trendline.
- White lines are Fibonacci retracement levels
Helplines:
- Purple lines are trendlines we take a look at.
- Blue, green, white and pink lines are 200MA, 100MA, 50MA and 20MA.
- The bull market support band showing a green line representing the 20 weeks simple moving average and a red line representing the 21 weeks exponential moving average
- Yellow lines are for visual help only.
Specials:
- Boxes represent either entry zone or support zone . Check the description.
- Cameras represent MA crossings. Yellow camera stands for a golden cross while the cyan camera stands for a death cross.