Good News & Bad
I'm afraid I have a mixture of good news and bad for Bitcoin today...
Lately, I've been looking closely at the 4 hour charts to try and spot a potential reversal, but the triangle pattern from the other day (which broke as expected) hasn't given us the start of new upward momentum.
So, I decided to take a more zoomed out look to see what was going on, and have spotted some good and bad signs, so let's take a look.
The Bad
I'll get the bad news out of the way first. Here we can see that uptrend (which I forgot to include on previous posts, big mistake!) has been broken:
https://www.tradingview.com/x/1qVeAFlt/
Daily Chart
This obviously isn't a good sign.
The support level that was keeping prices up is also being tested right now too, and the support that was offered by the recent triangle pattern is also being penetrated on the 4 hour chart from yesterday:
https://www.tradingview.com/x/q9sLetZs/
4 Hour Chart
The MACD which I posted yesterday, that looked to be turning bullish, has also gone bearish once again too:
https://www.tradingview.com/x/Iv4eov4m/
Daily MACD
The other thing you may notice, is that volume is still very low in the Bitcoin market at the moment.
So where's the good news?
The Good
The good news is that the period we're in currently - while not very bullish - could be part of a bullish penant pattern. Here it is here:
https://www.tradingview.com/x/CYfRu28W/
Daily Chart
That drawing is merely a guess. It can (and probably will) change in shape and need to be redrawn, especially if we see lower lows. But it looks like a classic Bullish pennant pattern to my still learning eyes.
Any thoughts on the above? Let me know below!
Thanks for viewing!
For more technical analysis and cryptocurrency related posts, see also: @toofasteddie, @gazur, @ew-and-patterns, @pawsdog, @cryptomagic, @exxodus, @beiker, @allthereisislove, @lordoftruth, @masterthematrix, @cryptoheads, @tombort, @maarnio, @steemaze & @briggsy
Not monetary, financial, or trading advice. For entertainment purposes only.
I sure hope that the good news stands too. I primarily look at XRP (fundamentally different to BTC) but it has been following similar pattern in the last few weeks. I think we can agree that there is an extended correction in the whole crypto market.
IMO the fundamental issue is there is not enough volume in the market due to seasonality and some FUD. Both the TA and FA should give better prediction when the volume picks up. I'm guessing that's going to be after Chinese New Year or when better access to the currency is established e.g. new exchanges, positive changes in regulations.
Also a learner here btw.
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Yeah, pretty much the whole market has been following Bitcoin, so I've mostly been sticking to charting that at the moment. Definitely still correcting by the looks of things!
The other positive could be if we see another drop to the previous lows, because that could indicate a double bottom.
There's definitely not enough volume, you're right there! I've set my self a reminder to sell as much as possible in the first week of next year, because this seems to happen every January, and there will probably be a repeat. :-P
P.S. Welcome to Steemit @paradiddle! If you're still learning too, then check those guys out I mention above. :-D
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Thanks! Will check them out.
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