The daily chart of Bitcoin. The price reached SMA50 which is a possible reversal line. We can see a retracement and probably the market is going to bounce from this MA and drops lows. If so, we should be ready to see the downward movement to the support zone between 7500.00 and 7000.00 formed by the support levels and the uptrend line from the hourly time frame. The market made a good upward movement from the 6500.00 level and it should be corrected.
If we look at the indicators, we’ll see following: RSI reverses in the overbought zone and it gives us a bearish signal MACD histogram is going to support the downward movement and it will give us a bearish signal MACD lines support the upward movement in the middle term at least DMI is bullish but ADX line falls and we should not expect any strong price movements.
For confirmation the power of bulls and further upward movement the price will have to break the high of the previous bullish candle and move above SMA50.
Conclusion: the market can drop in short term to the support zone between 7500.00 and 7000.00 levels. This zone is rather strong and it will be able to stop and reverse the price. But for continuation the downward movement the market will need strong fundamental support.
Bình luận
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During the day price stayed above 8000.00 support level but now we can see an attempt to drop to 7500.00 level at least. Watch for the possible price reversal from 7500.00 level and getting new buy opportunity.
@DLavrov, you could try adding all sorts of nonsense. Instead of just useful information and easy to read charts. Dlavrov the trader the legend, ready to take actual trades and be profitable in the long term.
tomas.rollo
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Interesting, just two questions:
1) wouldn't logarithmic price scale be better for such a big chart (6k-20k)? I'm using the log scale and there's another downward trendline that the price is just about to reach, see here:
2) Is there any reason for using 8 period RSI instead of the default 12 periods? Does it better correspond with the bigger bitcoin volatility or just a personal preference?
Thanks
T.
cycler
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@ToMas.rollo, yes the log scale is the correct scale to use.
DLavrov
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@ToMas.rollo,
1) you can use any type of scale if you think that it will be better for your trading/trading strategy
2) I like how 8 period works for my strategy, but it does not mean that this period is the best
IamCryptoWolf
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Also it's interesting to see how market has bounced from weekly MA50 exactly as 2014. Stoch RSI and RSI are in a similar configuration.
DLavrov
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@IamCryptoWolf, yes, it's a good bullish set-up. Hodlers will like it )
rahulverma0127
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I think we will see a 7800 before the weekend and then we go up again till 9000