Welcome happy Followers to more good news on BTC .
The last few hours have been important for BTC , with the top channel or being broken on the 4H Chart, and tested from above before price has moved up. Its another pattern at an important moment and does signify a significant break in the bear run that caused so much angst.
Those who follow the Dollars and Senses will be becoming familiar with the patterns and its two of these on the 4H chart, that tell us clearly we are in a good spot. Firstly note the red arrows as Price ADVANCES through the 200EMA (Green Line) and then pulls BACK perfectly to retest it from above and then straight after the touch CONTINUES in the original direction up. (This was a great trade, I must have been sleeping).
So we have an confirmation at the 200 , and another on the top trend or channel line on the 4 H Chart. That’s good, Very good.
It will be interesting watching everyone high-lite there articles about Bulls and ignore all the stuff they wrote about Bears and retests of lows until the next pullback. Personally, i would be more convinced in this as long term move if we had put in another low on the way back up, but for now i will trade what i see and put that to one side.
With the channel broken and conformed on a 4 H chart does it mean we are heading straight back to 20K? No i'm afraid not yet. We have significant resistance levels to break yet, and still need to close above the line on a . Once we close above on the don’t be surprised if The daily traders also want to see an and retest the line again. At least if they do you will know what’s happening, that’s why you follow Dollars and Senses. Less Hype, more TA.
Its been , and positive but its another battle won and not the war.
"The individual investor should act consistently as an investor and not as a speculator." - Ben Graham
You are an investor, not someone who can predict the future. Base your decisions on real facts and analysis rather than risky, speculative forecasts.
Once we failed to close above our Channel on the daily Chart the market was always going to sell off. The break on the 4H was a great, but our big picture analysis has said for some time that we expected to spend some time ranging between 12k and 10 K. That's still the game here until we get a break below 9800.
Profit taking is a very healthy thing in a market.
New analysis coming
Thanks for your charts. Its a nice divergence and is bearish. From my understanding if you go from the previous RSI low, its convergent and confirming a move up. I always found with convergence/Divergence if you wanted to you just found something that supported your opinion. Its just not my thing, I am sure it works well for you.
i dont trade divergence a lot. When i did i found you needed to have several confirmations outside of divergence. I recommend experimenting with some RSI settings and not using factory settings for such analysis. Try RSI 6, you may be pleasantly surprised with what you get.