MagicPoopCannon

Possible Dead Cat Bounce in Bitcoin! (BTC) MEOOOW!

COINBASE:BTCUSD   比特幣 / 美元
Hi friends! Let's see what's happening on the four hour chart for Bitcoin! We can clearly see that BTC             has put in a V bottom, and has rallied nicely off of yesterdays low. However, I want to caution everyone, that we do not have confirmation, that the selling is over. Interestingly, many of the other crypto charts that I follow, have already run into heavy overhead resistance, but BTC             hasn't. In the case of BTC             , it's heavy overhead resistance level is still higher, at about $12,900. That's the level that corresponds with the neckline of the head and shoulders pattern, the 50 % retrace, and now the 50 EMA (in orange) is in that area too. This is interesting, because, in comparison, Bitcoin             appears to be running out of gas. Looking at the volume , we can see how much it has fallen, which is indicative of exhaustion in this rally from the low. On the MACD , however, momentum has had a bullish crossover and is expanding to the upside. With that said, if BTC             can't even make it up to test the heavy resistance level , that would solidify the relative weakness, in comparison to the rest of the market. From here, I would watch to see if BTC             can make it up to that level. It has broken above the 61.8% retrace, and that should be supportive (at first) if BTC             begins to slide again. Despite the rally from the low, and how excited people are getting, the bears are technically still in control. Until BTC             clears the heavy resistance, gets above the 50 EMA and the 200 EMA , and preferably above the rising black trendline , the damage has been done. We need to see those developments, as evidence that the bulls are regaining control. Otherwise, there is an old saying on Wall St             . which you may become a victim of — Never try to catch a falling knife.

Dead Cat Bounce - is a temporary recovery from a prolonged decline or a bear market that is followed by the continuation of the downtrend. The name "dead cat bounce" is based on the notion that even a dead cat will bounce if it falls far enough and fast enough.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media! Good luck trading everyone. I'm out!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-MPC loves you-

-JD-
sub follow and will def advice people i know to follow you ,please keep up your reality check for blinded people like me
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totally agree. the bullishness for this weak rising wedge was just too bizarre
+2 回覆
JD, do you have any rules of thumb on identifying these dead cat bounces? Are there any or is more of a gut check with the volume?
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chwi03 jmgardner
@jmgardner, I'm newer, but I think the lower & diminishing volume is a major factor. And, I think that the fact that it has "positive MACD" going for it and yet it not making any significant climb is another potential sign. If anyone else wants to chime in, I'd love to learn or receive confirmation as well.
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@jmgardner, Thank you for the comment! Volume is certainly important, and so is overall performance in comparison to the rest of the crypto space. To clarify, I wasn’t saying for sure that this is a failed bottoming attempt. I just wanted to draw attention to the fact that severe overhead resistance still remains, and given the relative weakness of BTC, it may prove difficult to breach. Therefore, a dead cat may be bouncing.

-Magic-
+1 回覆
i was just wondering the same thing on my chart
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Ty MPC
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I'm hoping you are correct. I've been waiting to get back into LTC in but didn't trust this rise, I'll admit to having some FOMO all morning but I don't want to get caught. Hope waiting doesn't bite me.
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