BTCUSD confirming a fakeoutIn this brief and simple analysis, I'd like to focus your attention on the interplay between the 55EMA (green line) and the 200EMA (purple line), on the 1D timeframe of the index chart for BTCUSD.
In technical analysis, when a faster moving average crosses above a slower moving average, you obtain a bullish cross, when the faster one crosses below the slower one, you have a bearish cross on your hands.
Sometimes, when a cross is about to present itself, you'll witness a fakeout instead: a move on the opposite side of the trend that nullifies such potential cross between the moving averages.
Usually, when something like that happens, price action tends to continue towards that direction sooner rather than later.
While this is not a must, it's a general rule of thumb.
In this specific case, we can observe what I would call a majestic example of a fakeout on the 1D timeframe, meaning that as long as all closes remain above the slower moving average - the 200EMA in this case - there's no reason to be bearish on BTCUSD.
At the time of writing, the 200EMA is sitting around 27000.
