Daily technical Analysis Bitcoin (BTC/USD): Has Bitcoin Reached the Bottom or it is Just some dead cat bounce.
Analysis Summary:
Hi Friends, welcome to this analysis of Bitcoin, There is some rejoice in the market as bulls have gained some control.
Looking at MACD we can see that a bullish crossover has occurred and the volume is also expanding on the buy side, But the question still persists whether the bottom has been established and the bulls have full control?
Looking at the 4 hour chart we can see that Bitcoin had fallen below the rising trend line originating at the beginning of rally in October 2017. But it had some recovery and still trading upside of that line. As I said in my last post that this line is crucial, Bitcoin will have break over it significantly then it can be considered to have gathered some Good and strong upside momentum,
But there are some developments in the chart that I would like to point out, as you can see that Bitcoin has again formed a bearish flag by its recent movement, which I have drawn on the chart. This is giving me suggestion that there is still some downward potential still left and as I described in my last post $5600 Target still cannot be negated because we have not seen some solid evidence for its negation yet.
Further looking at the upside possibilities there is EMA50 just above its current position which so far has proven to be very resistive, if bitcoin manages to break above 50EMA then I will consider that as some strong evidence but not for a rally to all time high, to come at that conclusion I will wait bitcoin to break above the downward channel or at least the heavy resistance around $12700.
Till then I am still seeing some bearish signs in the chart and the slight upward movements like a trap set by Beers or just a dead cat bounce, so guys My suggestion will be to wait for some more time before trusting the bulls, The bears might still be waiting to rob the bulls again.
So friends that will be all from me, I suggest you watch this crucial moment and then decide the outcome, till then Good Bye and Best of Luck to you all.
I will keep you guys Posted in the next update Tomorrow,
Till then Goodbye and Best of Luck to You People.
A friend asked if there was to worry about the first fall to 13k. I told him that we could see it reach as low as 6k this year although I don't think it will reach that low. The truth is it could it could go as low as 1k and we wouldn't be worried would we? The best way not to be worried is to remember that money does nothing. People do everything. Us who create the future have had our power recognized by the world, and now we can invest in the Transition to the Resource Based Economy and make it happen faster, but we have never doubted our influence on things to come.
"money does nothing. People do everything."
Absolutely true, The Rise and fall is mainly due to people understanding TA Signals and knowing how to make money with that, Like you said for Money, Same applies to information as well, these signals do nothing apart from giving info its upto the people in market what they decide to do with it.
This post has received a 6.55 % upvote from @morwhale thanks to: @ajai.