BTC broke out of the downtrend

2020年8月3日

Welcome fellow Tradingviewers,

This analyses is a follow-up from our BTC halving TA and this analyses has proven to be effectious.
If you haven't already consider reading that analyses before going deeper into this one.

In this analyses we are going to show you our view on the current market situation for Bitcoin .

We will be analysing BTC using a top-down strategy, including candlestick patterns, indicators and price patterns.

Monthly:
- The monthly close was a bullish engulfing candle.
- This close was the 2nd HIGHEST CLOSE EVER for Bitcoin.
- We are still above all moving averages.
- We have closed the monthly above the 10800 monthly resistance.
- We have a bullish MACD

Weekly:
- We closed the weekly as a bullish engulfing candle.
- We have broken out of the downtrend formed from the top to 14K. (Dashed line in the graph)
- We can see a good accumulation period in the circle above the 50MA where the dashed line seemed to be the resistance.
- We closed below the 11500 weekly resistance.
- We still have the strong W formation on the MACD.
- The MACD is bullish and shows strength.
- We are well above all MA's

Daily:
- We closed the last daily candle as a bearish engulfing.
- We have tested the 12K resitance once.
- The MACD is bullish.
- We are well above all MA's

In summary:
In our last analyses we clearly stated that before reaching higher we had to break 10K for a shot at 11.5K. We clearly hit both targets.
We have broken out of a huge downtrend on the longer timeframes which indicates that the most probable way is up.
The W formation in the MACD is showing strength and the volume seems to be confirming the bullish picture.
There is still room for consolidation (in the short term) and we might even retrace back to the dashed line before moving higher but at this moment that seems rather unlikely.
The most important thing from our point of view is creating a higher high on the weekly timeframe.
The last weekly close was not high enough for us to begin thinking about the possibility of it becoming a higher high and for the confirmation of the bullish trend a higher high on the weekly is much appreciated.

So we broke out of the downtrend and are now waiting for a higher high to be made to confirm us going higher.

This analyses is only intended to share my idea, to educate and entertain you guys.
This should not be considered as financial advice.
I hope you guys enjoyed this analyses, if you did don't forget to leave a Like!
If you want to share your thoughts, please do so in the comments below!


Kind Regards,
Frank | Forallcrypto