With baited breath the BTC trading community has been waiting for a big breakout for the last two weeks. Short term position holders were split on which direction the price would go, but the sentiment was universal that something was going to give. Finally 2 days ago we received the break we had been waiting for, down. Bullish margin holders were crushed, and I'm sure there were many margin calls. But now the days of scalping in an uncertain market are over and we can get back to predicting long term trends.
Bitcoin has been consistently trading in a relatively fixed wedge for over a year. Numerous breaks have established lower lows and lower highs. All the while the MACD indicator has been showing higher lows, a hidden bullish divergence. The RSI, until September 2014 was confirming the trend, but then started establishing higher lows as well.
This most recent breakout has continued that trend, and the RSI is showing signs of an immediate term up tick, indicating that the bearish breakout is quite likely over and no new low will be established for the RSI at this time either.
Scalpers will be bullish, waiting for a corrective bounce on the massive move that occurred. But, this is also a great time to enter into a long-term bullish position. We are nearing the end of our descending wedge and both RSI and MACD are showing hidden bullish divergence. We are not likely to make it much lower than this in the short or long term and coins can currently be picked up for under 300$.
Bitcoin has been consistently trading in a relatively fixed wedge for over a year. Numerous breaks have established lower lows and lower highs. All the while the MACD indicator has been showing higher lows, a hidden bullish divergence. The RSI, until September 2014 was confirming the trend, but then started establishing higher lows as well.
This most recent breakout has continued that trend, and the RSI is showing signs of an immediate term up tick, indicating that the bearish breakout is quite likely over and no new low will be established for the RSI at this time either.
Scalpers will be bullish, waiting for a corrective bounce on the massive move that occurred. But, this is also a great time to enter into a long-term bullish position. We are nearing the end of our descending wedge and both RSI and MACD are showing hidden bullish divergence. We are not likely to make it much lower than this in the short or long term and coins can currently be picked up for under 300$.
