I've recently looked into the importance of Bitcoin testing its MA50 on the 1D chart. Right now the test is unsuccessful as the price has been rejected from roughly 7500 back to 6700.
** Before we start please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
On today's study I will look into the similarities of the current price action and the March bottom to the December 2018 Bottom and subsequent recovery period. For better serving the purpose of this analysis, I have decided to illustrate the price action with a line instead of the traditional candles. This we concentrate on volumes instead of price extremes.
First of all this is not the first time I study this comparison (December 2018 - March 2019 bottom sequence VS March - April 2020). You can look at the bottom of this analysis for past studies on this subject.
** Comparison and facts **
- Both Bottoms are the result of a roughly -50% decline (+/- 2%) from the last price touch on the 1D MA50.
- After the Bottom, the 1D MA50 serves as the top of the rebound attempt.
- The rejection that followed in January 2019 resulted into a drop to the 0.786 Fibonacci retracement level.
- During December 2018 - March 2019, the 1D MA50 acted as the pivot of this consolidation phase.
- The consolidation phase lasted roughly 105 days from the Bottom.
- The LMACD is currently close to making a bearish rollover, similar to what it did in January 2019 after Bitcoin made a top and rejection on the 1D MA50.
Assuming the same principles apply and that the same pattern will be roughly followed, Bitcoin may now make a pull back towards the 0.786 Fibonacci retracement level before recovering the recent High (that was rejected by the 1D MA50).
Do you agree with this idea? Feel free to share your work and let me know in the comments section!
Please like, subscribe and share your ideas and charts with the community!
Past studies on this subject:
** BONUS MATERIAL: The LMACD has been particularly useful for me in the past, accurately depicting buy and sell entries on solid trend **
** Before we start please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
On today's study I will look into the similarities of the current price action and the March bottom to the December 2018 Bottom and subsequent recovery period. For better serving the purpose of this analysis, I have decided to illustrate the price action with a line instead of the traditional candles. This we concentrate on volumes instead of price extremes.
First of all this is not the first time I study this comparison (December 2018 - March 2019 bottom sequence VS March - April 2020). You can look at the bottom of this analysis for past studies on this subject.
** Comparison and facts **
- Both Bottoms are the result of a roughly -50% decline (+/- 2%) from the last price touch on the 1D MA50.
- After the Bottom, the 1D MA50 serves as the top of the rebound attempt.
- The rejection that followed in January 2019 resulted into a drop to the 0.786 Fibonacci retracement level.
- During December 2018 - March 2019, the 1D MA50 acted as the pivot of this consolidation phase.
- The consolidation phase lasted roughly 105 days from the Bottom.
- The LMACD is currently close to making a bearish rollover, similar to what it did in January 2019 after Bitcoin made a top and rejection on the 1D MA50.
Assuming the same principles apply and that the same pattern will be roughly followed, Bitcoin may now make a pull back towards the 0.786 Fibonacci retracement level before recovering the recent High (that was rejected by the 1D MA50).
Do you agree with this idea? Feel free to share your work and let me know in the comments section!
Please like, subscribe and share your ideas and charts with the community!
Past studies on this subject:
** BONUS MATERIAL: The LMACD has been particularly useful for me in the past, accurately depicting buy and sell entries on solid trend **
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💰Free Channel t.me/tradingshotglobal
🤵Contact info@tradingshot.com t.me/tradingshot
🔥New service: next X100 crypto GEMS!