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-
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-