BTCUSDT - Quick Analysis
Updated
BTC was the crypto that started it all; and as such can be used as a barometer for the general market. Here I take a look at some of the trends and signals I see on the daily chart.
Recent high point was reached on August 17th (coincidentally my birthday, lucky me); which turned out to be a head in a head & shoulders that lead into the crash at the start of Sept.
Since then we've seen it break sub 10k, test it a few times, then a pull back in the last week with a little bit of a drop yesterday. Today seems to be a moment of market uncertainty with 10500 being a contentious area BTC is fighting against, despite many other coins performing very well today and showing notable retracement.
BTC likes to do head and shoulders before a dip. We saw it in March, we saw it before this crash, and on the 4 hr chart we saw it yesterday. On the hourly chart you can spot this trend in the initial march rebound off the EMA's.
When we get a drop, it tends to rebound off of the EMA 100 & 200 pretty strong, followed by a breakdown past it and lower lows. I circled the rebound with yellow, the breakdowns are in green.
I've marked two zones of interest on the chart. 1. is the January to the March crash, 2. is the end of July to today. I see a lot of similarities shaping up with how the March shakedown occurred with some notable exceptions:
MACD,STOCHboth looked stronger on the zone 2 rebound than the first rebound in zone 1. The drop this time also did not actually hit EMA 200, rebounding before it more around EMA 100.
These factors point to a drop not being as severe if we have further declines. They could change, but I would take historic support as the low point if we break past the current support band.
With the head and shoulders seeming to have posted for this rebound, I would look to further downs and a higher low in the grand scheme of things.
BUYING IN?
I don't think we can confirm an uptrend until it breaks through the trend of lower highs that has been established (dashed yellow line and possibly solid). The lack of a real rebound so far today is troubling for the bullish perspective.
Wait to see if we drop further, if we do plan on buying around the 9k mark. If we see round 2 of lockdowns? I'd set my sights a little lower.
I'm a guy that you don't know posting his ideas on the internet for the sake of improving as a human being. If you take this as financial advice, that's on you.
Feedback, criticism and crude humor are welcome :)
Recent high point was reached on August 17th (coincidentally my birthday, lucky me); which turned out to be a head in a head & shoulders that lead into the crash at the start of Sept.
Since then we've seen it break sub 10k, test it a few times, then a pull back in the last week with a little bit of a drop yesterday. Today seems to be a moment of market uncertainty with 10500 being a contentious area BTC is fighting against, despite many other coins performing very well today and showing notable retracement.
BTC likes to do head and shoulders before a dip. We saw it in March, we saw it before this crash, and on the 4 hr chart we saw it yesterday. On the hourly chart you can spot this trend in the initial march rebound off the EMA's.
When we get a drop, it tends to rebound off of the EMA 100 & 200 pretty strong, followed by a breakdown past it and lower lows. I circled the rebound with yellow, the breakdowns are in green.
I've marked two zones of interest on the chart. 1. is the January to the March crash, 2. is the end of July to today. I see a lot of similarities shaping up with how the March shakedown occurred with some notable exceptions:
MACD,STOCHboth looked stronger on the zone 2 rebound than the first rebound in zone 1. The drop this time also did not actually hit EMA 200, rebounding before it more around EMA 100.
These factors point to a drop not being as severe if we have further declines. They could change, but I would take historic support as the low point if we break past the current support band.
With the head and shoulders seeming to have posted for this rebound, I would look to further downs and a higher low in the grand scheme of things.
BUYING IN?
I don't think we can confirm an uptrend until it breaks through the trend of lower highs that has been established (dashed yellow line and possibly solid). The lack of a real rebound so far today is troubling for the bullish perspective.
Wait to see if we drop further, if we do plan on buying around the 9k mark. If we see round 2 of lockdowns? I'd set my sights a little lower.
I'm a guy that you don't know posting his ideas on the internet for the sake of improving as a human being. If you take this as financial advice, that's on you.
Feedback, criticism and crude humor are welcome :)
Note
Markets look to have opened with a red candle today on the hourly Keep an eye on the prize here as we may be heading in for the second leg of the crash if the trend plays out similar now as it did in zone 1 (March)
Come hang out with me on telegram, it's free and I won't be too mean too mean to you:
t.me/KadnimCrypto
t.me/KadnimCrypto
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