DigiByte (DGB) | This Can Be The Best Time To Buy From This Support Before It Goes Sky Rocket
Hi, friends hope you are well and welcome to the new update on Digibyte coin. As in my previous article, we have seen that the price action of DGB was moving in a pennant and broke out resistance. As I told you that now the price action my retest the previous resistance of pennant as support and in case of successful re-test it can start the next rally. But the retesting has been failed and the price action is again entered in the pennant.
The pattern has been changed to up channel:
Previously the priceline of DigiByte was forming lower highs but recently it has made a higher high. Therefore now the pattern has been changed from pennant to up channel. And the price action is at the support of this channel. Now we can use the Bill William alligator indicator with the combination of this up channel. At this time the bill Williams alligator indicator has given sell signal as the smallest time period MA is moved down and the biggest time period moving average is above all moving averages. But the priceline did not break down the support of the channel. Therefore we can ignore this sell signal but in case the priceline will break down the support and the William allegory indicator will be still giving sell signal then we can consider it as a stop loss and take the exit from DGB by selling it. We can also observe that the stochastic indicator has given buying signals as the blue line has crossed up the red line from the oversold zone.
Simple moving averages on the daily chart:
Now if we watch the different simple moving averages with the time period of 25, 50, 100, and 200 then price action has broken down the 25 and 50 simple moving averages and having the strong support of 100 SMA. We have still the smallest time period moving above all then 50 then 100 and then 200 below all. This order of the moving averages is still giving strong bullish signals. Once the priceline of DGB will be able to move up from the support of 100 SMA. Then it can breakout the 50 and 25 simple moving averages and again start the next rally to the upside. However, if the price line breaks down the 100 simple moving average support then it can reach 200 simple moving average support that is at 0.00000142 btc at this time.
Simple moving averages on a long-term chart:
Now if we switch to the long term weekly chart and place the same combination of the simple moving averages. Then the price action is facing strong resistance of 200 simple moving average since the first week of May 2020. And also having the strong support of 100 simple moving average. From the downside, the 50 and 25 simple moving averages are moving up to form a bull cross with 100 simple moving average. Once these simple moving averages will be moved up then the price action will be able to break out the 200 simple moving average resistance as well.
Even though we have a very good order of moving averages that are giving bullish signals and the different indicators are also giving the buying signals. But at this time the price action is at very critical support of an up channel. Therefore, if the price line of DGB breaks down the support then we should consider it as our stop loss strictly. Because on the other side the Bitcoin is turning more strong bullish and if the Bitcoin dominance will be increased then price action can break down this channel and start the rally to the downside.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.