As you can see, BTC has hit parabolic highs. Right after hitting resistance at 11.5k we imminently corrected to the current low of 8815.
Many people are wondering if this correction is over, or if we are going down for a visit to the 100 moving average once again.
Truly I am uncertain.
However earlier today, someone posted a chart in the chat, which had manually drawn lines that took the shape of a cornucopia basket.
I then wondered if there was some sort of that could closely represent this.
Shortly after I came up with the indicator above that takes the moving average and then multiplies/divides it by a set percentage, creating these channel bands. Which in this case is 75%.
It appears BTC has formed what I call a moving average channel.
While the band is widening, it appears that we have visited both the top and middle bands multiple times this year. Indicating that if this growth rate continues and history continues to repeat itself, BTC’s pumps and then dumps could get much more severe in the near future.
Therefore, judging strictly by this chart, this correction could be far from over.
DepthHouse – Moving Average Channel has been published for you all to see and try for yourselves.
Maybe this indicator has uses elsewhere? If you find something feel free to post it in the comments below!
Note: I am not short. I am merely posting this find for you all to see and analyze yourselves.
I wish you all the best of luck!
Be sure to check out my all my other indicators!
It appears in the past that we have tested the top MA line twice before falling... So could that happen again?
Based on previous fib levels, after hitting the top resistance line for the first time, it has extended to at least the 1.272 fib level days after.
So will history repeat itself once again?
Looking for support on the 236 or 382 of this current swing