BTC, Will it Stay Off the Ventilator? (BTC)
Happy terrific Tuesday! As you can remember from my diagnosis yesterday about BTC, we had to wheel her up to the ICU for some critical care! (see www.tradingview.com/...OONDAYS-Bitcoin-BTC/). It was most certainly a case of the Moooooondays for BTC... Now we see BTC rallying hard, like a college kid coming back into the party after throwing up twice and slamming V8. If you check the last post too, I predicted this rally represented by a star in my moondays post. But is BTC out of intensive care? Let's find out! Join the Doc in this progress note of our patient Bitcoin!
So we were able to take Bitcoin off the ventilator this morning when it fought up to a high of 7900s. This was great news for HODLers all around (those that buy and hold for the long term... even in dire circumstances). But is BTC really out of the woods yet? It's volume looked more promising in this rally(see yellow circle of volume corresponding to the yellow circle around the candlesticks). This volume was much increased from the previous false rally(see volume around February 3rd and post where I diagnosed the false rally:(www.tradingview.com/...ces-Don-t-Watch-BTC/).
Let's look at the other indicators. The MACD crossed over... so that's good. BTC got above the 50 EMA(orange line)... das good tew. The Stoch looks as if its bouncing from the bottom, so Buy?!. But here is where a lot of traders can go wrong. The Stoch bouncing off the bottom is usually only a good sign to buy in a BULL market. Although this bounce was a decent sign, check the downtrend channel... we aren't out of it yet.
In fact, we aren't even completely above the 100 EMA(teal), let alone the big bad thick 200 EMA(blue). So overall, BTC has to break through these two above resistances along with the top of the negative channel. Here's a hint: it won't happen with the volume decreasing to the level it just did. If the volume can shoot up again, we may have a chance to break through the 100 EMA, but then what about the next, and the next, and the NEXT...? Get my drift? It will take some serious buying power.
Until then, we should keep BTC in the cryptoland ICU until further buyer support can help her progress. That being said, I will not be buying yet.
Thank you for getting through this lengthy progress note... Be glad it wasn't hand written. As you could probably guess my hand writing sucks...
Love and cuddles,
-Doc
P.S. Please send BTC flowers and "get well soon" cards <3
So we were able to take Bitcoin off the ventilator this morning when it fought up to a high of 7900s. This was great news for HODLers all around (those that buy and hold for the long term... even in dire circumstances). But is BTC really out of the woods yet? It's volume looked more promising in this rally(see yellow circle of volume corresponding to the yellow circle around the candlesticks). This volume was much increased from the previous false rally(see volume around February 3rd and post where I diagnosed the false rally:(www.tradingview.com/...ces-Don-t-Watch-BTC/).
Let's look at the other indicators. The MACD crossed over... so that's good. BTC got above the 50 EMA(orange line)... das good tew. The Stoch looks as if its bouncing from the bottom, so Buy?!. But here is where a lot of traders can go wrong. The Stoch bouncing off the bottom is usually only a good sign to buy in a BULL market. Although this bounce was a decent sign, check the downtrend channel... we aren't out of it yet.
In fact, we aren't even completely above the 100 EMA(teal), let alone the big bad thick 200 EMA(blue). So overall, BTC has to break through these two above resistances along with the top of the negative channel. Here's a hint: it won't happen with the volume decreasing to the level it just did. If the volume can shoot up again, we may have a chance to break through the 100 EMA, but then what about the next, and the next, and the NEXT...? Get my drift? It will take some serious buying power.
Until then, we should keep BTC in the cryptoland ICU until further buyer support can help her progress. That being said, I will not be buying yet.
Thank you for getting through this lengthy progress note... Be glad it wasn't hand written. As you could probably guess my hand writing sucks...
Love and cuddles,
-Doc
P.S. Please send BTC flowers and "get well soon" cards <3
Until then,
Love, flowers, and no more ICU(for now!)
-Doc