BTC Major Support Played Well - Still A risk
We are finally back up from the danger zone but not the time to be fully relaxed.
The major support zone was able to hold the price very well. If you pay close attention to the price movement of bitcoin you will understand that we did not just move straight up. The price took a surge, then took a small correction, again rose and took another correction. These are called healthy correction is small time. They help in building small support zones.
You see that stairs like formation in hourly chart, that is a very good sign that the market is playing in a supportive manner.
Comes to MAs.
If you have been reading my previous charts, you know I have been talking about a Golden cross over under the base of zone 2. MA 20 crossed MA 50 and 100 and now we are waiting it to cross the 200 (spot is already marked)
A Golden Cross over happens when a small MA passes the larger MA to upside. This is a bullish signal.
The MACD has also cleared the pass as the MACD line (Blue) has crossed over the Signal Line (Orange).
What's the next move?
The price should consolidate for a while. It is similar to when a person climbs the hill, he has to rest for a while at a good spot before moving further in order not to get wasted. Same applies for the price chart. We are above Support zone 2 and needs to rest a bit.
During this resting period, the price will go up and down in a particular zone. Once the market has cooled off, the price will start further movement.
Watch out for major btc news today.
What's the risk?
It has been historically that when ever the market recovers from a small dip like this so easily, it is a market game sometimes. The market tricks the traders in beliving that bad times have passed and they become fearless and start taking big longs. This is the perfect time for the market makers to make some extra cash and they drop the price suddendly causing big number of longs to liquidate. The price will come back to the same zone momentorily but traders lose money. Hence it is recommended to use stop loss to prevent liquidation.
I would request you to read my previous charts, in order to understand various market playoffs. They will help you to learn various market movements in different situations.
Have any questions? Just ask!
The major support zone was able to hold the price very well. If you pay close attention to the price movement of bitcoin you will understand that we did not just move straight up. The price took a surge, then took a small correction, again rose and took another correction. These are called healthy correction is small time. They help in building small support zones.
You see that stairs like formation in hourly chart, that is a very good sign that the market is playing in a supportive manner.
Comes to MAs.
If you have been reading my previous charts, you know I have been talking about a Golden cross over under the base of zone 2. MA 20 crossed MA 50 and 100 and now we are waiting it to cross the 200 (spot is already marked)
A Golden Cross over happens when a small MA passes the larger MA to upside. This is a bullish signal.
The MACD has also cleared the pass as the MACD line (Blue) has crossed over the Signal Line (Orange).
What's the next move?
The price should consolidate for a while. It is similar to when a person climbs the hill, he has to rest for a while at a good spot before moving further in order not to get wasted. Same applies for the price chart. We are above Support zone 2 and needs to rest a bit.
During this resting period, the price will go up and down in a particular zone. Once the market has cooled off, the price will start further movement.
Watch out for major btc news today.
What's the risk?
It has been historically that when ever the market recovers from a small dip like this so easily, it is a market game sometimes. The market tricks the traders in beliving that bad times have passed and they become fearless and start taking big longs. This is the perfect time for the market makers to make some extra cash and they drop the price suddendly causing big number of longs to liquidate. The price will come back to the same zone momentorily but traders lose money. Hence it is recommended to use stop loss to prevent liquidation.
I would request you to read my previous charts, in order to understand various market playoffs. They will help you to learn various market movements in different situations.
Have any questions? Just ask!
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