BTCUSD MERRY CHRISTMAS
The break below 6k was extremely significant because we consolidated on it for so long and everybody thought it was the unbreakable bottom. So, when we broke it, it was inevitable that price would fall through many supports before finding a turnaround on the strongest of supports, which many thought would be 3k (because of its previous strength & if not 3k then where?).
Calling this exact bottom would have been difficult because it didn't reach 3k, however these are the factors pointing to 3215 (3115 on coinbase/mex) as our new bottom:
1) Descending wedge on descending volume (textbook turnaround pattern) (red)
2) The craziest RSI & MACD bullish divergence this chart has ever seen (green)
3) Buy volume breakout after we pushed past 3380 up to 4k
We stopped our recent run at the 4H 200 MA/EMA and are coming back down on descending volume (suggesting the formation of a continuation pattern).
$3650 is the next strong support - a previous bottom - which coincides with a nice trend line to put buys on and watch for a breakdown, however, anywhere between 3800 - 3650 is a strong buy on this chart.
See comment for volume analysis
Calling this exact bottom would have been difficult because it didn't reach 3k, however these are the factors pointing to 3215 (3115 on coinbase/mex) as our new bottom:
1) Descending wedge on descending volume (textbook turnaround pattern) (red)
2) The craziest RSI & MACD bullish divergence this chart has ever seen (green)
3) Buy volume breakout after we pushed past 3380 up to 4k
We stopped our recent run at the 4H 200 MA/EMA and are coming back down on descending volume (suggesting the formation of a continuation pattern).
$3650 is the next strong support - a previous bottom - which coincides with a nice trend line to put buys on and watch for a breakdown, however, anywhere between 3800 - 3650 is a strong buy on this chart.
See comment for volume analysis
Note
On the 4H chart I posted it appears the recent high was hit with a lot of sell volume and a bearish turnaround candle, however, in the chart below it is seen this was actually buy volume pushing up. We're good.Also shown is the descending volume since our recent high (red)
Note
1H 200 MA providing nice support at 3600 as well.Note
This move is looking a little tired running up into the 4200 resistance. Still watching 3600-3800 for a buy in before continuing up to 5k range.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.