BTC is at a crucial point on the daily chart. It has found strong-ish support around its Base Line (Kijun Sen) which is also near where its 50EMA & Bollinger Bands Lower bands are located. BTC has bounced off this level twice in 6 days but is still feeling downwards pressure. If BTC breaks downwards through this crucial level then there is a possibility BTC will drop to its 100EMA on the daily especially if the 50EMA & Base Line (Kijun Sen) becomes Resistance. if BTC closes this daily candle above its Base Line (Kijun Sen) then there is a possibility of consolidation and eventual renewed upwards pressure. The Lagging Span (Chikou Span) is still above the Price from 30 Periods ago so its not game over just yet. If we look at the ADX DI SMA, the ADX (Yellow Line) is at 15 indicating that although we are in a downtrend, it is a week downtrend. The +DI (Green Line) is at 15 and -DI (Red Line) is at 27 but the lines are pointing away from each other, indicating we may drop more from downwards pressure. A key thing to look out for if your waiting confirmation to add a long is to wait until the +DI crosses back over the -DI indicating renewed upwards momentum. The 10 day SMA on the ADX is at 16 & is indicating that the ADX (Yellow Line) might cross over the SMA which would indicate more downwards momentum & downwards Trend Strength if the ADX goes above 20-25 so BTC would most likely drop to its 100EMA. BTC is below its 10EMA, 20EMA and Bollinger Bands Mid Band Basis. The RSI is at 42 and pointing down indicating downwards momentum. The Bollinger Band Middle Band is starting to point downwards & the Bollinger Band Lower Band has turned outwards indicating we could drop lower unless we close above the 50EMA & Base Line (Kijun Sen). Is it the end of days…… nah, not yet, if BTC consolidates above its Base Line (Kijun Sen) and 50EMA on the Daily Chart for a few more days/weeks then that would be a good thing for BTC, and if you follow the Ichimoku Cloud System like i do, then it’s not game over unless the Price & Lagging Span (Chikou Span) cross over the Leading Span B (Senkou Span B) & close a daily or weekly candle into the Bearish Zone. Again, I'm just focusing on the Daily Chart for this but it is best practise to look at the earlier timeframes to understand what has happened there and what might happen on a later timeframe. We’ll have more of an idea which direction BTC is gonna trade in once BTC closes this daily candle above or below its Base Line (Kijun Sen) & 50EMA on the daily chart. I hope this is helpful. Good luck
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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.