The more I care about technical analysis the more I´m sure that using only simple trends is the thing that matters most.
I want to add some thoughts to my previous Bitcoin analysis.
As we see, there is a lot of trends in the chart, each one lasts different time frame. But for our needs, we can simply sort them to long term, mid term and short term.
Right now everybody is greedy and happy, that the correction is finally over and Bitcoin is going to all time highs again. The total market cap increased 50% during 3 last days and it all seems great. It can be so, but if we considered only the technical analysis, we can clearly see that nothing changed yet.
In a long term timeframe we´re still bullish, but that´s the same since the correction started. But more important now is the mid term and short term timeframe, which is both bearish. We´ve a nice green candle for today on the chart, but
1. It still didn´t break the short term channel
2. the day isn´t over yet
3. Even if it broke short term channel, it means nothing, because there are two more obstacles in the way - rezistance zone in the price level 12500 - 14200 USD + top line of the mid term trendline. Both are pretty strong.
4. The RSI channel looks pretty simillar - pointing downwards
Everything can happen, but I believe we will touch our long term trend support line first, which gives us buy target of 8,5-9,5k USD. That´s the space where I´m gonna look for price action and possibly adding to my long position.
On the other hand, if the price breaks the short downtrend, my advice is to wait until it breaks the mid term channel also, because until that time it can possibly reverse any time. And if it breaks the mid term, there will be still enough opportunity to make a nice profit.
Have fun!
I want to add some thoughts to my previous Bitcoin analysis.
As we see, there is a lot of trends in the chart, each one lasts different time frame. But for our needs, we can simply sort them to long term, mid term and short term.
Right now everybody is greedy and happy, that the correction is finally over and Bitcoin is going to all time highs again. The total market cap increased 50% during 3 last days and it all seems great. It can be so, but if we considered only the technical analysis, we can clearly see that nothing changed yet.
In a long term timeframe we´re still bullish, but that´s the same since the correction started. But more important now is the mid term and short term timeframe, which is both bearish. We´ve a nice green candle for today on the chart, but
1. It still didn´t break the short term channel
2. the day isn´t over yet
3. Even if it broke short term channel, it means nothing, because there are two more obstacles in the way - rezistance zone in the price level 12500 - 14200 USD + top line of the mid term trendline. Both are pretty strong.
4. The RSI channel looks pretty simillar - pointing downwards
Everything can happen, but I believe we will touch our long term trend support line first, which gives us buy target of 8,5-9,5k USD. That´s the space where I´m gonna look for price action and possibly adding to my long position.
On the other hand, if the price breaks the short downtrend, my advice is to wait until it breaks the mid term channel also, because until that time it can possibly reverse any time. And if it breaks the mid term, there will be still enough opportunity to make a nice profit.
Have fun!