Strong Trend Reversal Scenario on Bitcoin
Updated
I used the BraveNewCoin Bitcoin 1.76% Index to eliminate any exchange specific issues such as flash crashes and to identify strong volumes picking up as an aggregate.
The blue trend lines are the parabola curve support and resistance where the parabola resistance has been broken to the upside taking it to unhealthy levels starting early December. Trend has since reversed back to the parabola zones. The green zones are support and resistance trend lines in which price has retested several times showing that it is indeed reliable to be used as strong supports and resistances. A wick did test the zone, but it's hard to say unless we see a confirmation of a daily candle close. This is a wick-less chart for a much better perspective.
Volume hasn't picked up on the drop like previous big corrections indicating that people are still waiting on the sidelines to anticipate for more downside before they start going long again. RSI isn't oversold yet too, so a good price zone to get in again would be when RSI drops to oversold levels. EMA200 which is a good long-term support is in line with the parabola support showing possible price level at Another strong indicator here is the Momentum indicator as divergences have proven to work relatively well for Bitcoin as it is proven with the bearish div from the 20k levels to 13k level, and also previous strong reversals like the dip to 3k and 1.8k.
P.S Since a lot of people are wondering whether or not this really is the crash or just a huge correction, I will show you on another chart idea that I will publish very soon as to a more macro view on why I think this is just a natural correction. You can follow me to stay updated on that.
Contact me on twitter @rexyfayed
The blue trend lines are the parabola curve support and resistance where the parabola resistance has been broken to the upside taking it to unhealthy levels starting early December. Trend has since reversed back to the parabola zones. The green zones are support and resistance trend lines in which price has retested several times showing that it is indeed reliable to be used as strong supports and resistances. A wick did test the zone, but it's hard to say unless we see a confirmation of a daily candle close. This is a wick-less chart for a much better perspective.
Volume hasn't picked up on the drop like previous big corrections indicating that people are still waiting on the sidelines to anticipate for more downside before they start going long again. RSI isn't oversold yet too, so a good price zone to get in again would be when RSI drops to oversold levels. EMA200 which is a good long-term support is in line with the parabola support showing possible price level at Another strong indicator here is the Momentum indicator as divergences have proven to work relatively well for Bitcoin as it is proven with the bearish div from the 20k levels to 13k level, and also previous strong reversals like the dip to 3k and 1.8k.
P.S Since a lot of people are wondering whether or not this really is the crash or just a huge correction, I will show you on another chart idea that I will publish very soon as to a more macro view on why I think this is just a natural correction. You can follow me to stay updated on that.
Contact me on twitter @rexyfayed
Note
I forgot to mention about the fibs. The EMA 200, parabola support and 0.236 are all well aligned.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.