Two weeks ago we saw a lot of bears 🐻 roaming the crypto streets, there was panic as usual. At the time, we were trading at below $20k. I think we had many people calling for another dip and were confident that we'd see the bottom again. What changed? Looking back, one can only marvel at the sudden shift from being aggressively bearish to being religiously bullish. That's Crypto for you. At the time of writing this, #BTC is trading at $28,350 on gate.io. What really changed was the sentiment in the market perhaps due to the facts in the charts or just moonboys doing their thing. You can check it out in my previous post here
In this post I'll just point out something very important in the chart which I "believe" is very crucial for #BTC. Before I proceed, there's a disclaimer I need to declaim. Everything I post are not financial advice, they're for Educational purpose. Do your own research before you YOLO your cash.
In this chart, there are 3 interesting things to know- this is the weekly chart by the way🙂. The blue 🔵 arrow points at a very critical line in Bitcoin's history (the 200 weekly Moving Average-200MA). Throughout Bitcoin's history, this is the first bear market we'd trade below this line- we literally spent about a year below. For about 2months it was our resistance, we got rejected twice then last week we broke through which caused the sudden shift in sentiment. Why's Monday crucial? 🤔 After breaking the yellow 💛 200MA line with a nice green candle, we would need a confirmation candle. Currently we need to close this week above that line to confirm the bull run and this line is around $25,600.
Why I think we would close above this line is due to some facts in the chart.
The yellow 💛 arrow points at a dragonfly doji which is a trend reversal. 96% times confirms bullishness.
Stochastic RSI which is our momentum is having a Bullish cross to the upside.
Bearish divergence on the weekly RSI negated already🙂 by forming a double bottom.
In conclusion... It's clear that the chances of closing below $25,600 ion Sunday night is very low if everything goes as expected. The scenario many bulls want is holding this 200MA as support for a couple of months and having a bullish Stochastic RSI. We might whick down, it shouldn't be a problem as long as the body of the candle closes above that line 🙂, we're good.
It'd be nice having your opinions and perspectives in the comment section. Do have a breathtaking weekend. I'll catch you next time.