BTCUSD - sideway market as we chuck away sell orders at 200D MA
Updated
Good day traders and thanks for taking the time to review my ideas. Feel free to leave comments and if it has helped you out, please let me know with a like
This is a follow up to my previous idea:
After a few days of sell offs due to being denied at the 200 day MA, here we are, several fib levels deep into the retracement for the previous wave. Whatever wave that was, its fib levels are definitely being respected here as we bounced from .50 down to .618, and now we just bounced off the .786 level, on the dot.
Where do we go from here? We’re still within our bullish parallel channel so no need to fret. The minute we trade below this channel we should be concerned that the bears have already taken over, but for now, we’re looking very good with 3 possibilities:
1) As you can see by the new RSI trend that started from the beginning of may and recently confirmed with this hold at 9065, we have a bullish RSI divergence in the 1hr. Weak but much needed nonetheless. RSI divergence are the most effective at calling reversals, specially within a sideway market like we currently have. Likely we’ll come back up to chuck away a few more sell orders at the 200 day MA. We’ll continue to do this several times before there won’t be anymore and hopefully we’ll have a break out.
2) Of course, if we fail sharply at the 10K mark, chances are even higher we’ll be seeing another tumble as nervous investors exit the market to watch it develop, which is probably the best thing to do at the moment.
3) Lastly, if we fail to even reach the 200D MA and instead get denied at approximately 9740, which is close to the .786 correction of this new 5 wave down, it would be a strong signal that we may see the low 7K again. Who the hell knows.
Although I see 1 bullish and 2 bearish possibilities, I still feel bullish mainly based on the new RSI support that just got confirmed from this recent support so hopefully we’ll hold. Likely we’ll form some sort of bullish ascending triangle until we can break free… We shall see
As always, good luck and stay safe out there
Kinashi San
*For pure fun and joy, not financial advice. Not a recommendation to buy sell or hold.*
This is a follow up to my previous idea:
After a few days of sell offs due to being denied at the 200 day MA, here we are, several fib levels deep into the retracement for the previous wave. Whatever wave that was, its fib levels are definitely being respected here as we bounced from .50 down to .618, and now we just bounced off the .786 level, on the dot.
Where do we go from here? We’re still within our bullish parallel channel so no need to fret. The minute we trade below this channel we should be concerned that the bears have already taken over, but for now, we’re looking very good with 3 possibilities:
1) As you can see by the new RSI trend that started from the beginning of may and recently confirmed with this hold at 9065, we have a bullish RSI divergence in the 1hr. Weak but much needed nonetheless. RSI divergence are the most effective at calling reversals, specially within a sideway market like we currently have. Likely we’ll come back up to chuck away a few more sell orders at the 200 day MA. We’ll continue to do this several times before there won’t be anymore and hopefully we’ll have a break out.
2) Of course, if we fail sharply at the 10K mark, chances are even higher we’ll be seeing another tumble as nervous investors exit the market to watch it develop, which is probably the best thing to do at the moment.
3) Lastly, if we fail to even reach the 200D MA and instead get denied at approximately 9740, which is close to the .786 correction of this new 5 wave down, it would be a strong signal that we may see the low 7K again. Who the hell knows.
Although I see 1 bullish and 2 bearish possibilities, I still feel bullish mainly based on the new RSI support that just got confirmed from this recent support so hopefully we’ll hold. Likely we’ll form some sort of bullish ascending triangle until we can break free… We shall see
As always, good luck and stay safe out there
Kinashi San
*For pure fun and joy, not financial advice. Not a recommendation to buy sell or hold.*
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