$BTC - An Indepth look at Bitcoin USDT
Today I am going to go into a more indepth look into the future of Bitcoin starting with the monthly chart, then the weekly and our current daily outlook.
The indicators i use here are Heikin Ashi candles. These candles are used to identify trends taking averages from prior candles high, lows, openings and closings. It is a lagging indictor so you will not see the exact price reflected in the candle, though I personaly am a trend trader so these work the best for me when looking into entering and exiting a trade.
Second we have Bollinger Bands. I love these bands as they include the 20 period moving average, they are great for determining volitility in a market and the upper and lower bands in my opinion work great as estimated upper and lower bands of resisitance and determining oversold ad overbought considions.
The BB% indicator works well with the Bollinger Bands as it helps determine the direction of the trend, used to find divergence in trend changes, and helps with determining overbought and oversold conditions.
LAst indicator i use is the Accellerator OScilator i call AC which is a histogram hat is used to confirm and determine when a trend is changing. When the histogram is below zero and is growing its the sign of a bearish trend change. The opposite is true for bullish trends above zero. The lines are colored red for bearish signals in the trend change and green are bullish changes in the trend.
I have drawn some support and resisitance lines using turning points and peaks off the Heikin Ashi candles. Red dotted lines are resisitance points, green ones are support.
Now with the monthly chart one can argue overall that Bitcoin is still overall bullish as it sits way above the 20 period moving average but we have been in months of a correction though this month we did see a small rally hence why we have a small green candle. Where near the end of the month and its forming a doji which with Heikin Ashi still is a sign of a possible reversal, though we find ourselves at the top of a channel. For there to be a continued long term trend change with bitcoin with the possibility of there being new highs, the channel has to be broken. We do not have enough data for a long range AC oscillator to populate but the BB% is showing a possible turn, The weekly and daily charts though may not give us the long term shift we need at this point.
The last three weeks have been bearish overall and increasing bearish as the candles are getting larger. The AC oscillator is going below the zero line ans going red showing an overall weekly trend change is in the process. For there to be an overal trend change for Bitcoins future, we need next week to show some gains. Right now on the weekly, we are not seeing this. the BB% indicator is trending down though we have a line of support around $6681 at the bottom band followed by support around $6678 which tells me this is a strong area. We have hit this area at least twice the last two months and found a reversal in the trend so we hope history repeats itself. The bands on the weekly chart are starting to contrict, the possible start of a bollinger squeeze which could show a heavy move bearish or bullish in the upcoming weeks. It may be to early to tell though when or if this will happen.
The daily chart is showing some life today with some positive candle forming with some buying going on. We have a very small line of divergence happening with the BB% and we are rebounding a bit off the lower bollinger band. The AC Oscillator is starting to move from negatives back up to zero which can be the start of a trend reversal but this till not be confirmed until we are above zero here and we break the current channel. Once that channel is broken, we still need to break resistance around $7991 and i would want to see a break across the 20 period moving average.
The indicators i use here are Heikin Ashi candles. These candles are used to identify trends taking averages from prior candles high, lows, openings and closings. It is a lagging indictor so you will not see the exact price reflected in the candle, though I personaly am a trend trader so these work the best for me when looking into entering and exiting a trade.
Second we have Bollinger Bands. I love these bands as they include the 20 period moving average, they are great for determining volitility in a market and the upper and lower bands in my opinion work great as estimated upper and lower bands of resisitance and determining oversold ad overbought considions.
The BB% indicator works well with the Bollinger Bands as it helps determine the direction of the trend, used to find divergence in trend changes, and helps with determining overbought and oversold conditions.
LAst indicator i use is the Accellerator OScilator i call AC which is a histogram hat is used to confirm and determine when a trend is changing. When the histogram is below zero and is growing its the sign of a bearish trend change. The opposite is true for bullish trends above zero. The lines are colored red for bearish signals in the trend change and green are bullish changes in the trend.
I have drawn some support and resisitance lines using turning points and peaks off the Heikin Ashi candles. Red dotted lines are resisitance points, green ones are support.
Now with the monthly chart one can argue overall that Bitcoin is still overall bullish as it sits way above the 20 period moving average but we have been in months of a correction though this month we did see a small rally hence why we have a small green candle. Where near the end of the month and its forming a doji which with Heikin Ashi still is a sign of a possible reversal, though we find ourselves at the top of a channel. For there to be a continued long term trend change with bitcoin with the possibility of there being new highs, the channel has to be broken. We do not have enough data for a long range AC oscillator to populate but the BB% is showing a possible turn, The weekly and daily charts though may not give us the long term shift we need at this point.
The last three weeks have been bearish overall and increasing bearish as the candles are getting larger. The AC oscillator is going below the zero line ans going red showing an overall weekly trend change is in the process. For there to be an overal trend change for Bitcoins future, we need next week to show some gains. Right now on the weekly, we are not seeing this. the BB% indicator is trending down though we have a line of support around $6681 at the bottom band followed by support around $6678 which tells me this is a strong area. We have hit this area at least twice the last two months and found a reversal in the trend so we hope history repeats itself. The bands on the weekly chart are starting to contrict, the possible start of a bollinger squeeze which could show a heavy move bearish or bullish in the upcoming weeks. It may be to early to tell though when or if this will happen.
The daily chart is showing some life today with some positive candle forming with some buying going on. We have a very small line of divergence happening with the BB% and we are rebounding a bit off the lower bollinger band. The AC Oscillator is starting to move from negatives back up to zero which can be the start of a trend reversal but this till not be confirmed until we are above zero here and we break the current channel. Once that channel is broken, we still need to break resistance around $7991 and i would want to see a break across the 20 period moving average.
Comment:
Since i ran out of room, I am adding here that if we do not break the channel and we continue on this bearish trend, the last line of support is still the $6678 support line I previously stated in the weekly chart. This has been a strong area of support and for Bitcoin i continue to hope history repeats itself.
Comment:
Here we have the channel broken and the AC oscillator has gone positive which usually confirms a trend change, however Volume is starting to flatten out right now so this may be a short lived boost to Bitcoin. If volume increases as we move into other markets, then the trend will continue to rise and we will see a test of the $7991 area of resistance. I am not looking to add any more Bitcoin until we break this area, and pass above the 20 period moving average.
Here we have the channel broken and the AC oscillator has gone positive which usually confirms a trend change, however Volume is starting to flatten out right now so this may be a short lived boost to Bitcoin. If volume increases as we move into other markets, then the trend will continue to rise and we will see a test of the $7991 area of resistance. I am not looking to add any more Bitcoin until we break this area, and pass above the 20 period moving average.