Digibyte vs Bitcoin - Digibyte set to come out on top... for now
Welcome to heyitskolin's analysis of DGB (Digibyte) and BTC. This is charted using the four hour chart on the logarithmic scale.
Ok, so from 10th of April DGB seems to have finished it's consolidation phase that began around the 19th of March forming a new uptrend channel (dotted black line). Accumulation Distribution has been increasing adding strength to this new uptrend channel (Note: for those of you learning, An uptrend in the Accumulation Distribution Line reinforces an uptrend on the price chart and vice versa – one of the many uses for the accumulation distribution indicator).
Aroon Up is high, whilst Aroon Down is flat to the floor, adding further confirmation that the new uptrend is valid; whilst the 200 EMA is also supporting this view.
Now it is worth noting the MACD has just crossed over bearish and we have fallen below the EMA 12. Therefore the latest emerging candle is looking to now test the bottom of the uptrend channel. I am not worried about falling through the bottom of the uptrend channel at this point in time as we have the EMA 26 as support whilst (at the time of writing this) also having a bullish doji star emerging in the 15 minute chart (these patterns are usually of medium reliability). The area we are now testing has also previously been confirmed as support back around the 8th/9th of February. Therefore, I think the next valid price action would be for a bounce off the bottom of the uptrend channel and provided this occurs (seems likely) we will then have a free run through a lack of resistance to test the 38.2% Fib level.
Trade safely, and as always DYOR.
Cheers
Ok, so from 10th of April DGB seems to have finished it's consolidation phase that began around the 19th of March forming a new uptrend channel (dotted black line). Accumulation Distribution has been increasing adding strength to this new uptrend channel (Note: for those of you learning, An uptrend in the Accumulation Distribution Line reinforces an uptrend on the price chart and vice versa – one of the many uses for the accumulation distribution indicator).
Aroon Up is high, whilst Aroon Down is flat to the floor, adding further confirmation that the new uptrend is valid; whilst the 200 EMA is also supporting this view.
Now it is worth noting the MACD has just crossed over bearish and we have fallen below the EMA 12. Therefore the latest emerging candle is looking to now test the bottom of the uptrend channel. I am not worried about falling through the bottom of the uptrend channel at this point in time as we have the EMA 26 as support whilst (at the time of writing this) also having a bullish doji star emerging in the 15 minute chart (these patterns are usually of medium reliability). The area we are now testing has also previously been confirmed as support back around the 8th/9th of February. Therefore, I think the next valid price action would be for a bounce off the bottom of the uptrend channel and provided this occurs (seems likely) we will then have a free run through a lack of resistance to test the 38.2% Fib level.
Trade safely, and as always DYOR.
Cheers
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