#Bitcoin and its friends the MAs - Day Trader Explains

21 avr. 2019

Welcome back to TJ's Trade Corner, today we will take a HTF chart of Bitcoin.
There are many similarities between the last bear market and this one. Yet, most people like to see on the bullishness, over-leveraged positions might get into some problems.

We have the 50 Week MA, the 50 Week EMA and the 100 Week EMA.
Right now, the 50 MA and EMA are the current resistance and gave us last week a doji candle with slightly significant sell volume.
This week is not even near a significant volume, which reminds me of the similar situation in 2015 as shown above.
TJ- Stoch is showing an overbought condition, yet no cross-down for now.
This lets me to believe that we will test the 100 Week EMA which is currently at 5548, get there a significant rejection on the daily and then head down.

Head down to which point?

Well, looking at the similar example in 2015, we had a 30% with a good 10-15% wick. As for now, it would be a drop to 4.2k with a nice wick to the ascending support (or the less dramatic option would be a drop to 4.8k with a wick to low 4.6k). The important notice would be that we close above the previous resistance (which led to the 5k breakout). That again would be a nice S/R flip, as we saw on ETH and then we would be ready to head more up and finally into the old accumulation zone of 6-7k.

Little addition to the TJ-Stoch, going into the zone of 90p + is very attractive for small impulse moves, which would give the background for the 100EMA test. Overbought conditions are not always bad..
Moreover, the S/R flip, with the next big impulse move, would be very beautiful if we could get once again the ~~40p rejection, as you can see on BTC is really a very strong zone.

This trade has been published before in my private learning group "ETG".
We are going over many observations and possible trades very frequently.
It is meant for only those who are really interested in becoming a self sufficient trader and learning about all the secrets of trading.

Should you be interested in ETG or the indicators I use, join my discord channel and say hi in chat, then I will give you a free trial for which you might be interested.

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Cheers TJ