Note: All of what I claim below is simply the way I perceive the market. I am not certain nor do I suggest you take my advice without first taking into consideration what I have said. Whatever you do, be critical of what everyone claims. Those who claim certainty in these markets tend to get hurt the most.
Observations:
As I’ve mentioned in my previous BTC Update, I believe we still remain in a downtrend, which is obviously reflected in the price.
Notice how price broke down from the red horizontal line A after doing a bit of bouncing around. After this sharp move down, price began to move sideways, which I’ve highlighted with the light green rectangular box. This is a sign of uncertainty in sentiment, as market participants are battling strongly to push the price up or down. It is perhaps best to sit and wait until you get a clearer sign to get in.
But even when the clearer sign arrives, one must be able to quickly adapt, as BTC has a tendency of fooling even the most experienced traders. Look how price breaks out of the green rectangular box and then quickly fails. I believe that if the price breaks out but then falls back below the point it broke out of, it is best to close out your position until it gets back above this level. Even if it’s barely crossing below, I quickly close out the position. There is no need to be desperate in a market that brings you a new opportunity everyday.
With the above being said, we have reached a critical area in BTC price action overall. If price reaches the horizontal trendline B and fails to hold, we may see further decline. Now is a good time to be paying attention (Or setting alarms).
On the bright side, RSI on the 1D interval is starting to develop the classic Bullish Divergence. I’ve observed that bullish divergences tend to be more effective on the larger time frames, especially the 1D. Perhaps we may see a strong move up here shortly.
Lastly, volume is starting to pick up slowly as I think most other market participants are well aware that price is at a critical point.
Thank you for reading,
Have a nice day!
Observations:
As I’ve mentioned in my previous BTC Update, I believe we still remain in a downtrend, which is obviously reflected in the price.
Notice how price broke down from the red horizontal line A after doing a bit of bouncing around. After this sharp move down, price began to move sideways, which I’ve highlighted with the light green rectangular box. This is a sign of uncertainty in sentiment, as market participants are battling strongly to push the price up or down. It is perhaps best to sit and wait until you get a clearer sign to get in.
But even when the clearer sign arrives, one must be able to quickly adapt, as BTC has a tendency of fooling even the most experienced traders. Look how price breaks out of the green rectangular box and then quickly fails. I believe that if the price breaks out but then falls back below the point it broke out of, it is best to close out your position until it gets back above this level. Even if it’s barely crossing below, I quickly close out the position. There is no need to be desperate in a market that brings you a new opportunity everyday.
With the above being said, we have reached a critical area in BTC price action overall. If price reaches the horizontal trendline B and fails to hold, we may see further decline. Now is a good time to be paying attention (Or setting alarms).
On the bright side, RSI on the 1D interval is starting to develop the classic Bullish Divergence. I’ve observed that bullish divergences tend to be more effective on the larger time frames, especially the 1D. Perhaps we may see a strong move up here shortly.
Lastly, volume is starting to pick up slowly as I think most other market participants are well aware that price is at a critical point.
Thank you for reading,
Have a nice day!