BTC: Time to buy soon...Watch for Key Levels (Part 3 Hopium)
On this post I will take a look at evidence that the worst might be over and what levels to watch for confirmation. If the key levels hold, then hope of seeing another higher high is still alive, even if there are short term volatility.
1. Top Left Chart:
a. Price bounced off a long term trend line from March 2020 low. As long as price doesn't break this trendline, there is hope for a turnaround.
b. Price is consolidating on VPVR high volume area. As long as this area holds, there is still hope of recovery
c. MACD went from an extreme high to an extreme low. This is prime indication of at least a mid term bounce.
d. Price is below 200 day EMA. If price can maintain testing 200 DEMA and manage to get above it, that will be a very good sign.
2. Top Right Chart:
a. This is BTC regression band. BTC market cycle have touched the top band so far in all market cycles. And during each cycle there has been a mid cycle correction that has tested the mid band. The current price action looks to be the case. As long the mid band holds (24-28k Range) we might still see a top that is yet to come. Below this mid band area opens up a bear market scenario.
3. Bottom Left Chart:
a. Fear and greed index is at low 20s, channeling fear in the market. We have seen this level back in March 2020 timeframe. By itself it is not a reversal indicator, but if we see an uptrend from fear to neutral, there is a good chance of a major bounce.
4. Bottom Right Chart:
a. In all of the past market cycles, on monthly timescale, RSI has made a higher high top before the market cycle is complete. Each of the highs are over 85 level (this cycle has seen the lowest high number so far). RSI is now at a critical area where the major trend changes have confirmed on the prior market cycles. If RSI starts picking up from here and gets above the neural zone, the probability of making another higher high on RSI and Price increases, potentially for the final market cycle high.
1. Top Left Chart:
a. Price bounced off a long term trend line from March 2020 low. As long as price doesn't break this trendline, there is hope for a turnaround.
b. Price is consolidating on VPVR high volume area. As long as this area holds, there is still hope of recovery
c. MACD went from an extreme high to an extreme low. This is prime indication of at least a mid term bounce.
d. Price is below 200 day EMA. If price can maintain testing 200 DEMA and manage to get above it, that will be a very good sign.
2. Top Right Chart:
a. This is BTC regression band. BTC market cycle have touched the top band so far in all market cycles. And during each cycle there has been a mid cycle correction that has tested the mid band. The current price action looks to be the case. As long the mid band holds (24-28k Range) we might still see a top that is yet to come. Below this mid band area opens up a bear market scenario.
3. Bottom Left Chart:
a. Fear and greed index is at low 20s, channeling fear in the market. We have seen this level back in March 2020 timeframe. By itself it is not a reversal indicator, but if we see an uptrend from fear to neutral, there is a good chance of a major bounce.
4. Bottom Right Chart:
a. In all of the past market cycles, on monthly timescale, RSI has made a higher high top before the market cycle is complete. Each of the highs are over 85 level (this cycle has seen the lowest high number so far). RSI is now at a critical area where the major trend changes have confirmed on the prior market cycles. If RSI starts picking up from here and gets above the neural zone, the probability of making another higher high on RSI and Price increases, potentially for the final market cycle high.
Publicaciones relacionadas
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.