BitcoinShort
MA 200 Killed BTC!! Bottom Revealed in a Simple Chart!
Updated
Hello Friends!
After having seen numerous BTCUSD charts, I am unsure why no top author told you about the ULTRA-IMPORTANT MA 200 on a daily chart which has been capping BTC growth since March 2018.
To keep things simple, I have made this chart using MA 20 (blue), MA 50 (black) and MA 200 (red), Fibonacci retracement levels, previous price action support levels (red extended lines drawn to the left of Fibonacci levels) and a black trend line which has been capping further growth of BTC (along with MA 20) after the rejection at 10000 level by MA 2000 on May 5, 2018.
How the moving averages -- especially the MA 50 and MA 200 -- have been acting as support and resistance is self explanatory on the chart.
I have used two Fibonacci levels in the chart. The larger one has 1.272 retracement at $2260 which I believe is the bottom given the strong price action support level at that point.
However, there are three other support levels between current price and $2260 which are the 1.272 retracement at $4624, 1.414 retracement at $4623 and 1,618 retracement at $3160 as seen on the small Feb retracement. They are likely to serve as temporary support and might prompt minor relief rallies. How they coincide with previous price action support has been illustrated using red lines.
Here is why I am bearish and rejecting a bullish scenario :
Price tends to follow the path of least resistance. Since pretty much all the major resistances are above the current price level (to add to the worry, most resistances are within short ranges i.e. USD 6681-8390) and BTC has not been able to breach them with momentum, a bullish scenario in near term looks unlikely. Price must go down in phases to test the major support at 2260 level, consolidate there to gather strength and make an upward journey with momentum. A long term bullish scenario will only be confirmed only after a breach of MA 200 is confirmed.
I am not mentioning about the classical charting patterns since they have already been covered by many top authors. They also indicate a further break-down to 2260 level.
Thank you.
Feedback welcome.
After having seen numerous BTCUSD charts, I am unsure why no top author told you about the ULTRA-IMPORTANT MA 200 on a daily chart which has been capping BTC growth since March 2018.
To keep things simple, I have made this chart using MA 20 (blue), MA 50 (black) and MA 200 (red), Fibonacci retracement levels, previous price action support levels (red extended lines drawn to the left of Fibonacci levels) and a black trend line which has been capping further growth of BTC (along with MA 20) after the rejection at 10000 level by MA 2000 on May 5, 2018.
How the moving averages -- especially the MA 50 and MA 200 -- have been acting as support and resistance is self explanatory on the chart.
I have used two Fibonacci levels in the chart. The larger one has 1.272 retracement at $2260 which I believe is the bottom given the strong price action support level at that point.
However, there are three other support levels between current price and $2260 which are the 1.272 retracement at $4624, 1.414 retracement at $4623 and 1,618 retracement at $3160 as seen on the small Feb retracement. They are likely to serve as temporary support and might prompt minor relief rallies. How they coincide with previous price action support has been illustrated using red lines.
Here is why I am bearish and rejecting a bullish scenario :
Price tends to follow the path of least resistance. Since pretty much all the major resistances are above the current price level (to add to the worry, most resistances are within short ranges i.e. USD 6681-8390) and BTC has not been able to breach them with momentum, a bullish scenario in near term looks unlikely. Price must go down in phases to test the major support at 2260 level, consolidate there to gather strength and make an upward journey with momentum. A long term bullish scenario will only be confirmed only after a breach of MA 200 is confirmed.
I am not mentioning about the classical charting patterns since they have already been covered by many top authors. They also indicate a further break-down to 2260 level.
Thank you.
Feedback welcome.
Note
Next destination 5450 and we are going there pretty soon. 4950 to 5050 range will follow right after. A minor relief rally can be expected there. Targets for that rally can only be considered after we get there. Thank you.Trade active
Trade closed: target reached
Exited trade at 3405 at profit as trailing take profit was hit. All positions closed. RSI divergence and morning star on daily make it unsafe to short any-longer even though medium term bias is still to the downside.
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.