After a market move like this, it is important to ask yourself, did I raise enough cash? Has the short term trend (3 weeks or less) changed? So now we will look at the charts on a multi timeframe duration to decide where we need to be positioned. The chart we will be looking at is UUP/BTCUSD. UUP is an ETF that tracks the price of the USD. Sometimes it helps me to look at the chart upside down, but using a relative strength comparison is always better than just inverting the chart. Let’s have a look!
On the daily, the MACD can be used for the trend. MACD is showing that USDT is still looking to gain some strength back, so this is saying it would be more bullish to own USDT in the short term trend. There is also a gap in this chart that can be used as an upside target for USDT. However, the Stochastic RSI is showing that the short term trade (3 days or less) is tired and that BTC is looking to gain some ground back. If we see a higher low on the UUP/BTC price, we should use it as a selling opportunity, because that would confirm that the trend has changed.
On the daily, the MACD can be used for the trend. MACD is showing that USDT is still looking to gain some strength back, so this is saying it would be more bullish to own USDT in the short term trend. There is also a gap in this chart that can be used as an upside target for USDT. However, the Stochastic RSI is showing that the short term trade (3 days or less) is tired and that BTC is looking to gain some ground back. If we see a higher low on the UUP/BTC price, we should use it as a selling opportunity, because that would confirm that the trend has changed.
