Bitcoin Weekly | Are We Bullish Now? Only If...

8 jun 2020

Yes... Are we bullish now on Bitcoin?

What needs to happen first for our view to switch from bearish to bullish?

What's your view?
Share in the comments section below...


Reading The Charts

One of the most common mistakes I made while learning to chart was to ignore the signals.

Sometimes I got so caught up in my own bias, that I ignored all the signals that were looking the other way and only focused on the ones that supported my calls.

Guess what I learned?
It is better to look at them all.

The market sentiment can be bearish or bullish.
Your own feelings can be right or wrong...

But if what you are doing is charting, focus on the signals on the chart.

We can first read the chart signals and describe them based on technicals and then I can give you my opinion/prediction of what going on.


Let's start with the volume indicator... This is the first signal we will read for you today.

Chart:

Notice that the trading volume, even if low, is rising/increasing while Bitcoin is moving up in the past.

Looking at the present time, the trading volume is clearly dropping.

We continue with the trend and higher highs, lower highs.

Chart:

Together with the volume going higher, BTCUSD going higher, we also have peaks hitting higher (higher highs).

Together with volume dropping, BTCUSD dropping and the peaks hitting lower (higher lows).

Here we have multiple signals supporting each other.

EMAs action analysis (another signal). If you've been reading my articles recently, you might be aware of the analysis we do on the EMAS... Here is how it goes.

BTCUSD dropped and tested MA200 in December 2018 after capitulation.

This led to a very strong run and a lower high compared to Dec. '17 ATH.

As the $13,764 peak is hit in June 2018 after the test of MA200, prices start to drop... The low was set at $4,000 in March exactly at EMA300.

After the test of EMA300, prices peaked first at $10045 and finally $10398 this week, printing a lower high compared to June 2018... What this all mean?

If Bitcoin can't move to pass $10,500 soon enough; Continue reading below...


How Do We Go From Bearish To Bullish?

Having a strong close above $10,500 and going from there... As long as this resistance level remains active, we stay open to seeing prices crash hard any day.

If BTCUSD manages to move above, we need to see follow up by the bulls fairly quickly or else the risks remain of the flash crash/drop.

Now, that is only my take... My view of the chart... Let me ask you, what is yours?

Namaste.