Bitcoin needs to breakout from the Monthly 21 EMA
Updated
- Bitcoin finally broke out of the Ascending Triangle, thus negating my theory of a continuation pattern.
- The rally smashed through the 200 Day Moving Average, and is currently trading above it.
Here is what is interesting to me:
The rally actually stopped at the Monthly 21 EMA. It is a very important long term level in my book, because of how the price behaves with it. You can see how Bitcoin used it as support for 5 months during 2018 before finally breaking down from it in November. The more a level is tested, the weaker it becomes.
For a few months the price consolidated in a triangle before breaking upwards just recently.
In 2015, after the Major Bitcoin low, there was a rally that actually resembles what could be happening right now. After a period of low volatility, it made a sudden surge all the way to the 21 Monthly EMA, then dropped quite significantly. After that, Bitcoin rallied back up and finally broke up from that EMA, thus ending the bear market.
For me, if bitcoin manages to smash through the Monthly 21 EMA, and successfully retest it as support, the bear market is over.
- The rally smashed through the 200 Day Moving Average, and is currently trading above it.
Here is what is interesting to me:
The rally actually stopped at the Monthly 21 EMA. It is a very important long term level in my book, because of how the price behaves with it. You can see how Bitcoin used it as support for 5 months during 2018 before finally breaking down from it in November. The more a level is tested, the weaker it becomes.
For a few months the price consolidated in a triangle before breaking upwards just recently.
In 2015, after the Major Bitcoin low, there was a rally that actually resembles what could be happening right now. After a period of low volatility, it made a sudden surge all the way to the 21 Monthly EMA, then dropped quite significantly. After that, Bitcoin rallied back up and finally broke up from that EMA, thus ending the bear market.
For me, if bitcoin manages to smash through the Monthly 21 EMA, and successfully retest it as support, the bear market is over.
Note
Bitcoin is about to retest the EMA.Note
Divergence on the 1H, 2H, and 4H RSI, coupled with the Monthly EMA as resistance increase the chances of a dump.Note
Also valid for the Weekly SMMA 50. Support for a good portion of 2018, and now potentially strong resistance.Note
EMA still acting as resistance.
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