Welcome to this brief analysis of BTC . Bitcoin is doing very well, having recently broken through the negative (red dotted line), it continues to go up up up! Having done so, it also created an pattern, which is a classic reversal sign. When a trend is happening and a reversal pattern forms, it's a good indication that the trend will reverse. It also gives us pretty good clues as to where the target is for the reversal.
To find the target, we measure the distance from the neck line to the tip of the head, and then take that same distance and extend it from the base of the neckline in the other direction. If what I just wrote makes no sense, just look at the picture: our target for BTC in this new trend is around 12600s.
There are no overt signs of Bitcoins trend going back negative at the moment. Our lagging indicator, the moving averages are looking hopeful too with the 50 (pink) looking to cross the 200 (blue). If this happens, I will feel even more confident of BTC going to hit the 12600s target.
Glad we all yelled at BTC to go up... maybe it worked?!
As always, stay healthy friends.
Also make note of the indicators: RSI is still shooting up.. it's in the "overbought zone" but no worries as there is no signs of it slowing down. As for the ADX(indicator important for trend strength). It is at around 40, which is very strong. It looks like its heading down a little but on the 4 hour chart its still shooting upwards.
All in all, I still expect BTC to hit our target at 12600s. As I said before, it may hit some corrections in the meantime(just like in our last update). But these will be short-lived and unsustained. If I see anything otherwise I will be paged by the crypto-nurses at cryptoland general hospital and we can figure out a new plan from there!
Until then, stay healthy <3
Hidden Divergence(current case 4 hr chart):
Regular Divergence (In Bitcoin's, right before the trend reversal)... Remember when BTC was almost 20,000? Regular divergence happened and it reversed!
Stay healthy all!
If BTC makes a serious downturn I'll make more comments then. I'm going to ride it out for now.
I will write a better update tomorrow but until then, I wouldn't watch ;) ...
and just let it go up some more. I STILL expect some more corrections before the 12600 is hit as I said. But for now, things are looking good!
I think BTC will have its chance very soon to come back at this level. I don't think it will drop much more from now until it does. Hopefully this time BTC will be armed with enough of a bull squad to over-come it. We shall see!
Until then, Don't watch !
Regardless, I think I'm going to pull out of BTC for the time being. The target of 12600s was not met, but I believe it will get there eventually. I would personally rather make my profits on all the swings though.
See the 4 hr chart below. It shows all indicators turning bearish:
-Negative divergence on RSI.
-MACD crossover and diving down towards 0
-moving averages starting to turn downwards
Some may say it's a little early to pull out... Well, I would rather take my 20% profits instead of being greedy and waiting longer for more. We had a good bull run for a bit there, but I think one more big dip may be required.
I'll update with another idea in time.
Good luck out there friends. <3