Bear Dominant Trend Still Rules
So, as we have seen PayPal news did have a positive effect on the market, but it was short lived as we tumbled back down again. This is characteristic of being in a bear trend still. The chart that I have decided to do was looking at how up trends and down trends length can tell you the dominant trend of the market. The greater the length means that the market is more inclined to go that direction. For most of this year since the all-time high we have been seeing longer down trends than up. Indicating how we are in a more bear dominant trend. A short time in May we saw a bigger length up trend than down trend which quickly turned into a balanced market before capsizing back down into a bear trend.
RSI is a great indicator to see where the trends reverse. Often it will either peak or bottom and generally head the direction of the trend. During the balanced market phase RSI was just going around 50 (black line) signaling how we were in general going sideways with neither bears nor bulls winning. Looks like we have now fallen, but are slowing the current bear trend. The length of the downs has been getting shorter, meaning there is a possible STOP to the trend that may have a reversal. Yet, RSI is signaling that we may have more movements down yet to come. That would mean going below this month's all-time low.
Indicators
* DC – As the price is underneath the midline it reinforces that we are stuck in a bear trend. If we can get up and stay above that line a bull trend may be in effect. I'm watching to see if it breaks.
* RSI – Overall the only time it went into overbought mode was when we saw that rally back in May. Remaining below that and staying under 50 for most of the time tells me that the bears still hold this market in their paws.
Targets
Bull Target: $422
Bear: 400.16
If you haven't seen it then you should take a look at ibankbitcoins' chart showing a flag pattern. It is dead on so far. Take that BearV lol. I had the same sort of bull inclination, but nowhere near the accuracy of ibankbitcoins. Congratz on a worthy chart. It is linked in the related ideas below.
I talk a little bit more on PayPal news on my recent blog post: allbitcointa.cu.cc/2014/09/paypal-and-bitcoin-become-even-closer.html
RSI is a great indicator to see where the trends reverse. Often it will either peak or bottom and generally head the direction of the trend. During the balanced market phase RSI was just going around 50 (black line) signaling how we were in general going sideways with neither bears nor bulls winning. Looks like we have now fallen, but are slowing the current bear trend. The length of the downs has been getting shorter, meaning there is a possible STOP to the trend that may have a reversal. Yet, RSI is signaling that we may have more movements down yet to come. That would mean going below this month's all-time low.
Indicators
* DC – As the price is underneath the midline it reinforces that we are stuck in a bear trend. If we can get up and stay above that line a bull trend may be in effect. I'm watching to see if it breaks.
* RSI – Overall the only time it went into overbought mode was when we saw that rally back in May. Remaining below that and staying under 50 for most of the time tells me that the bears still hold this market in their paws.
Targets
Bull Target: $422
Bear: 400.16
If you haven't seen it then you should take a look at ibankbitcoins' chart showing a flag pattern. It is dead on so far. Take that BearV lol. I had the same sort of bull inclination, but nowhere near the accuracy of ibankbitcoins. Congratz on a worthy chart. It is linked in the related ideas below.
I talk a little bit more on PayPal news on my recent blog post: allbitcointa.cu.cc/2014/09/paypal-and-bitcoin-become-even-closer.html
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