BTC July 01, 2021
50 RSI is a very important level. Anything above 50 RSI is bullish. Anything below 50 RSI is bearish. A crossover from one side to the other marks a change in direction of the trend. Since we broke down from the top of the bearish ascending wedge pattern, that is the moment we entered sub 50 RSI levels, and 50 RSI is the resistance of the downtrend, or the support of an uptrend, as can be seen historically.
Next, Bollinger Bands are always useful for trading. You want to wait for a squeeze in the bands, with a nice solid move to the upside. This is pretty much always what the start of an uptrend will look like. Now, our current BB (Bollinger bands) situation is that we have not squeezed, and we are at the underside of the middle brown line, and it is resistance. So based on BB, pretty neutral, but not a buy, more just waiting because I already sold top.
Finally, MACD. The moment we broke down from the bearish ascending wedge, we entered negative MACD territory just like sub 50 RSI pattern. Our MACD is losing momentum on the bullish side, indicated by a lighter color green bar, not a solid colored green bar, indicating that it is weakening and heading towards the red. Not always guaranteed, but the momentum has shifted towards that direction.
Still waiting at 17-20k levels for a bounce.
Next, Bollinger Bands are always useful for trading. You want to wait for a squeeze in the bands, with a nice solid move to the upside. This is pretty much always what the start of an uptrend will look like. Now, our current BB (Bollinger bands) situation is that we have not squeezed, and we are at the underside of the middle brown line, and it is resistance. So based on BB, pretty neutral, but not a buy, more just waiting because I already sold top.
Finally, MACD. The moment we broke down from the bearish ascending wedge, we entered negative MACD territory just like sub 50 RSI pattern. Our MACD is losing momentum on the bullish side, indicated by a lighter color green bar, not a solid colored green bar, indicating that it is weakening and heading towards the red. Not always guaranteed, but the momentum has shifted towards that direction.
Still waiting at 17-20k levels for a bounce.
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