I Am Your Blazing Torch, in The Dark Market Forest! BITCOIN! BTC
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Hi everyone! Welcome to this update analysis on the big boss of crypto, BITCOIN! Let's get right to it! Looking at the four hour chart, you can see that BTC continues to move to the downside, as it tests the 200 EMA (in purple.) If you'll notice, there is a bit of hesitation on the 200 EMA. BTC has actually been testing it for about ten hours now. The 200 EMA has been pierced, but none of the recent candles have closed below. The piercing of the 200 EMA does weaken it as support, but at the moment, BTC is holding it.
On the MACD, we can see that it's still expanding lower, under a bearish crossover, but it is starting to turn just slightly. There is a potential that BTC could find some support here, particularly because we recently found support on the 200 EMA, on 3/1. However, if you look closely at the action on 3/1, you can see that there was a convergence of many support levels. The 50 EMA (in orange,) the 200 EMA (in purple,) and the top of the downtrend channel (in pink) were all converging on the same point. So, if BTC takes out the 200 right here, that will be an indication that the 200 isn't being supportive on it's own, and that support was only held on 3/1, because there was a convergence of three support levels. That's actually what happened with the 50 EMA, so it will be interesting to see how the 200 holds up.
If BTC continues lower, the downward sloping black trendline is just below us as support, followed by the rising green trendline below that, and then the top of the pink downtrend channel. If BTC falls back into the pink downtrend channel, that would obviously be extremely bearish. So, you can see how there are stair-step levels of increasing significance on the way down. A break below the rising green trendline would also be a very negative sign. I'm not calling for those things to happen, I'm just showing you the risk levels. At the moment, the 200 EMA appears to be holding as support, and the inverse head and shoulders pattern is still intact.
However, much like the repetitive head and shoulders formations that were formed after the all time high, we may see more inverse formations develop, before the final breakout to the upside. That is just speculation though, based on what we saw after the all time high, but there isn't currently any indication of more formations developing. For now, let's look to see if the 200 EMA can hold. If it does, we need to see BTC surpass the 50 EMA, and then the 61.8% retrace, and retest the neckline of the inverse. 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!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
On the MACD, we can see that it's still expanding lower, under a bearish crossover, but it is starting to turn just slightly. There is a potential that BTC could find some support here, particularly because we recently found support on the 200 EMA, on 3/1. However, if you look closely at the action on 3/1, you can see that there was a convergence of many support levels. The 50 EMA (in orange,) the 200 EMA (in purple,) and the top of the downtrend channel (in pink) were all converging on the same point. So, if BTC takes out the 200 right here, that will be an indication that the 200 isn't being supportive on it's own, and that support was only held on 3/1, because there was a convergence of three support levels. That's actually what happened with the 50 EMA, so it will be interesting to see how the 200 holds up.
If BTC continues lower, the downward sloping black trendline is just below us as support, followed by the rising green trendline below that, and then the top of the pink downtrend channel. If BTC falls back into the pink downtrend channel, that would obviously be extremely bearish. So, you can see how there are stair-step levels of increasing significance on the way down. A break below the rising green trendline would also be a very negative sign. I'm not calling for those things to happen, I'm just showing you the risk levels. At the moment, the 200 EMA appears to be holding as support, and the inverse head and shoulders pattern is still intact.
However, much like the repetitive head and shoulders formations that were formed after the all time high, we may see more inverse formations develop, before the final breakout to the upside. That is just speculation though, based on what we saw after the all time high, but there isn't currently any indication of more formations developing. For now, let's look to see if the 200 EMA can hold. If it does, we need to see BTC surpass the 50 EMA, and then the 61.8% retrace, and retest the neckline of the inverse. 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!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Note
BTC is breaking through key support levels...
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