BTC - 4hr chart with 2 Pitchforks and a cloud
Updated
BTC is below its Bollinger Bands Middle Band Basis 20 Period SMA for this 4hr timeframe.
Note that the Upper Bollinger Band is moving downwards and the Lower Bollinger Band is starting to curve upwards indicating volatility has slowed on this 4hr timeframe.
At the moment BTC is back ABOVE its Least Squares Moving Average (LSMA) for this 4hr timeframe. A successful close ABOVE the LSMA is crucial for a recovery.
BTC has found support from its support level at around $56,540. BTC has bounced off this level before on the 28th Oct 2021. BTC needs to stay above this support level, failure to do so will prob lead to a drop to the 2 support line at around $52,900.
Using the Ichimoku Cloud Settings of 20,60,120,30 but note time only using the cloud portion, we can see that BTC is in the Bearish Zone of the Ichimoku Cloud for this 4hr timeframe. Note that we have had a Cloud (Kumo) Twist, the Leading Span A (Senkou Span A) has crossed back UNDER the Leading Span B (Senkou Span B) creating a new Red Bearish Cloud for this 4hr timeframe. Note that both Leading Spans are pointing downwards at the moment.
Volume has increased on this Binance 4hr chart and note that the last 5 Volume Bars have been ABOVE its Volume 20 Period Moving Average.
BTC is BELOW its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 5 4hr candles that i have selected.
BTC is also BELOW its Volume Profile Visible Range Point of Control (VPVR POC) for this chart’s visible range.
BTC has 2 potential Pitchfork directions on this 4hr chart. BTC needs to CLOSE this 4hr candle ABOVE its descending Pitchfork Pattern Median Line (Black A,B,C). If BTC closes above the descending Pitchfork Median Line then we may see BTC follow an upwards or sideways trajectory following the ascending Pitchfork Pattern (Red A,B,C).
The Average Directional Index (ADX DI) is showing a strong trend with the ADX (Orange Line) at 38.32 and ABOVE its 9 Period EMA (Black Line) which is at 34.04. The +DI (Green Line) has dropped to 7.71 and the -DI (Red Line) has risen to 31.62 indicating Negative Momentum is stronger than Positive Momentum on this 4hr timeframe. We need the +DI (Green Line) to cross back ABOVE the -DI (Red Line) on this 4hr timeframe for any upwards recovery to hold.
The Moving Average Convergence Divergence (MACD) is indicating negative momentum, note that the MACD Line (Blue Line) is BELOW its Signal Line (Orange Line) and is also BELOW its 0.0 Base Line in the Negative Zone. Note that we also have increasing Red Histograms. Even if the MACD Line (Blue Line) crosses back above the Signal Line (Orange Line) we still need the MACD Line (Blue Line) to cross back over and ABOVE the 0.0 Base Line into the Positive Zone for any longterm BTC recovery to become sustainable.
It should be an interesting weekend for BTC.
I hope this is helpful with your trading and hodl-ing.
Notes:
LSMA = Black Squiggly Line on chart.
Bollinger Bands = Grey Bands on chart.
Support and Resistance Lines = Horizontal Black Dashed Lines on chart.
VPFR POC = Short Horizontal Red Line on chart.
VPVR POC = Long Horizontal Red Line on chart.
Descending Pitchfork = Black A,B,C Pattern on chart.
Ascending Pitchfork = Red A,B,C Pattern on chart.
Volume MA = Orange Line going through Volume Bars on chart.
Note that the Upper Bollinger Band is moving downwards and the Lower Bollinger Band is starting to curve upwards indicating volatility has slowed on this 4hr timeframe.
At the moment BTC is back ABOVE its Least Squares Moving Average (LSMA) for this 4hr timeframe. A successful close ABOVE the LSMA is crucial for a recovery.
BTC has found support from its support level at around $56,540. BTC has bounced off this level before on the 28th Oct 2021. BTC needs to stay above this support level, failure to do so will prob lead to a drop to the 2 support line at around $52,900.
Using the Ichimoku Cloud Settings of 20,60,120,30 but note time only using the cloud portion, we can see that BTC is in the Bearish Zone of the Ichimoku Cloud for this 4hr timeframe. Note that we have had a Cloud (Kumo) Twist, the Leading Span A (Senkou Span A) has crossed back UNDER the Leading Span B (Senkou Span B) creating a new Red Bearish Cloud for this 4hr timeframe. Note that both Leading Spans are pointing downwards at the moment.
Volume has increased on this Binance 4hr chart and note that the last 5 Volume Bars have been ABOVE its Volume 20 Period Moving Average.
BTC is BELOW its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 5 4hr candles that i have selected.
BTC is also BELOW its Volume Profile Visible Range Point of Control (VPVR POC) for this chart’s visible range.
BTC has 2 potential Pitchfork directions on this 4hr chart. BTC needs to CLOSE this 4hr candle ABOVE its descending Pitchfork Pattern Median Line (Black A,B,C). If BTC closes above the descending Pitchfork Median Line then we may see BTC follow an upwards or sideways trajectory following the ascending Pitchfork Pattern (Red A,B,C).
The Average Directional Index (ADX DI) is showing a strong trend with the ADX (Orange Line) at 38.32 and ABOVE its 9 Period EMA (Black Line) which is at 34.04. The +DI (Green Line) has dropped to 7.71 and the -DI (Red Line) has risen to 31.62 indicating Negative Momentum is stronger than Positive Momentum on this 4hr timeframe. We need the +DI (Green Line) to cross back ABOVE the -DI (Red Line) on this 4hr timeframe for any upwards recovery to hold.
The Moving Average Convergence Divergence (MACD) is indicating negative momentum, note that the MACD Line (Blue Line) is BELOW its Signal Line (Orange Line) and is also BELOW its 0.0 Base Line in the Negative Zone. Note that we also have increasing Red Histograms. Even if the MACD Line (Blue Line) crosses back above the Signal Line (Orange Line) we still need the MACD Line (Blue Line) to cross back over and ABOVE the 0.0 Base Line into the Positive Zone for any longterm BTC recovery to become sustainable.
It should be an interesting weekend for BTC.
I hope this is helpful with your trading and hodl-ing.
Notes:
LSMA = Black Squiggly Line on chart.
Bollinger Bands = Grey Bands on chart.
Support and Resistance Lines = Horizontal Black Dashed Lines on chart.
VPFR POC = Short Horizontal Red Line on chart.
VPVR POC = Long Horizontal Red Line on chart.
Descending Pitchfork = Black A,B,C Pattern on chart.
Ascending Pitchfork = Red A,B,C Pattern on chart.
Volume MA = Orange Line going through Volume Bars on chart.
Note
Oops, above it should say 'Bitstamp Chart' not 'Binance Chart' Sorry ;-)Note
We now have a new C Pivot point of the Ascending Pitchfork Pattern (Red A,B,C). Note that we have had 2 successful retest of the Descending Pitchfork Pattern Median Line (Black A,B,C) as support on this 4hr timeframe. Note that BTC is also back ABOVE its VPFR POC for the new 11 4hr Candles that i have selected. Note that BTC is also back above its LSMA and Bollinger Bands Middle Band Basis for this 4hr timeframe. We need this 4hr candle to successfully close ABOVE these levels. I hope this is helpful with your trading and hodl-ing.
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