BTC/USD, Gold, Silver: Technical Outlook, edition #48 (11/07/21)
Bitcoin remains tight within a range, consolidating above USD 33K and below USD 34K.
The inelasticity around this price zone has persisted for some time now, and it beckons the question from our bored traders watching paint dry, when will there be some volatility?
Well, it is coming… a 10% swing is just around the corner.
So let us look at the D1 BTC/USD chart and examine why we could see some big swings this week.
Bitcoin, BTC/USD - 1 Day (D1)
Using the EMA (Exponential Moving Average) and MAs (Moving Average) as a proxy for reversals in trends, we can watch for these potential shifts by trading twists on the 20 EMA (GREEN) and 50 MA (RED).
A ‘Death Cross’ occurs when the 50 MA (RED) crosses over the 20 EMA (GREEN) and is predominantly bearish to technical traders. The last time BTC/USD saw a death cross on the D1 was around USD 58K, coincidentally when Elon Musk tweeted about Bitcoin.
As a result, BTC/USD fell as much as 50%... Some blame Elon; others witnessed this rejection and sold out. Conversely, there are signs this correction may now be over temporarily as BTC/USD squares off with its D1 20 EMA (GREEN) around USD 34K.
The D1 50MA (RED) is not hovering far above either, meaning a bullish break and close above USD 37K would generate a ‘Golden Cross’.
If BTC/USD trades too unpredictably, please feel free to reference our Gold (XAU/USD) and Silver (XAU/USD) analysis.
Gold, XAU/USD - 4 HOUR (H4)
Silver, XAG/USD - 4 HOUR (H4)
Q’s Conclusion
It’s best to let Bitcoin flip and turn both the 20 EMA (GREEN) and 50 MA (RED) into support first to allow for a genuine buying opportunity.
See you again for the next update.
- q
The inelasticity around this price zone has persisted for some time now, and it beckons the question from our bored traders watching paint dry, when will there be some volatility?
Well, it is coming… a 10% swing is just around the corner.
So let us look at the D1 BTC/USD chart and examine why we could see some big swings this week.
Bitcoin, BTC/USD - 1 Day (D1)
Using the EMA (Exponential Moving Average) and MAs (Moving Average) as a proxy for reversals in trends, we can watch for these potential shifts by trading twists on the 20 EMA (GREEN) and 50 MA (RED).
A ‘Death Cross’ occurs when the 50 MA (RED) crosses over the 20 EMA (GREEN) and is predominantly bearish to technical traders. The last time BTC/USD saw a death cross on the D1 was around USD 58K, coincidentally when Elon Musk tweeted about Bitcoin.
As a result, BTC/USD fell as much as 50%... Some blame Elon; others witnessed this rejection and sold out. Conversely, there are signs this correction may now be over temporarily as BTC/USD squares off with its D1 20 EMA (GREEN) around USD 34K.
The D1 50MA (RED) is not hovering far above either, meaning a bullish break and close above USD 37K would generate a ‘Golden Cross’.
If BTC/USD trades too unpredictably, please feel free to reference our Gold (XAU/USD) and Silver (XAU/USD) analysis.
Gold, XAU/USD - 4 HOUR (H4)
Silver, XAG/USD - 4 HOUR (H4)
Q’s Conclusion
It’s best to let Bitcoin flip and turn both the 20 EMA (GREEN) and 50 MA (RED) into support first to allow for a genuine buying opportunity.
See you again for the next update.
- q
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