AT CryptoScan: Bitcoin bloodbath revisited and drawing of lines
Previously projected, the potential tops identified previously were too early. However, when it came along and warnings given, I did not post it. Nonetheless, here is a post-mortem of the days before the fall off the cliff.
The daily chart is (IMHO) a very robust chart for BTCUSD. Using this as a starting base from October 2020, you can see that there were two distinct time points where entries were good. This comes with MACD cross up and cross over into the bullish area, together with some volume analysis, overlaid onto the ATIS8 system.
Moving into April 2021, BTCUSD was still being pushed despite the MACD and RPM indicating that it is losing steam. Then a blow off top happened in mid-April, and it was an early warning; as opposed to media excitement about a new high (it happened to Gold as well last year, remember?). Shortly after that, the MACD and RPM crossed down and over into the bearish territory around 19 April 2021. And then ATIS8 sell signals triggered just before a base was formed about 50K. The euphoria was short lived and stalled mid-May. In the intraday charts (1H), you can see the breakdown over the following days. Nonetheless, the huge drop on 12 May was the final warning as it sliced through the up trending support line. And the days following broke down of the support zone to fall off the cliff.
Yesterday found a support level of a less steep up trending support, after piercing through to check in on a support level at 30K. That was already 5 standard deviations away at 30K, and mathematically, a bounce was due... hence a 20% bounce to settle at about 36K. Currently it is about 10% up from yesterday's closing and the candlestick formation implies a significant rebound, if not a bottom bounce.
Longer term, BTCUSD <40K is a pretty decent deal, especially for those who previously missed the boat. But be careful, and be prepared. IF it can move 15% upside in hours, it can also move by a similar magnitude the opposite way.
We can be sure of one thing... volatility is here!
I'll leave you with this phrase - "A day in Crypto is like a month in equities."
So, draw lines, and pre-determine where you want to buy in or sell out, and "be like water" (Bruce Lee)
The daily chart is (IMHO) a very robust chart for BTCUSD. Using this as a starting base from October 2020, you can see that there were two distinct time points where entries were good. This comes with MACD cross up and cross over into the bullish area, together with some volume analysis, overlaid onto the ATIS8 system.
Moving into April 2021, BTCUSD was still being pushed despite the MACD and RPM indicating that it is losing steam. Then a blow off top happened in mid-April, and it was an early warning; as opposed to media excitement about a new high (it happened to Gold as well last year, remember?). Shortly after that, the MACD and RPM crossed down and over into the bearish territory around 19 April 2021. And then ATIS8 sell signals triggered just before a base was formed about 50K. The euphoria was short lived and stalled mid-May. In the intraday charts (1H), you can see the breakdown over the following days. Nonetheless, the huge drop on 12 May was the final warning as it sliced through the up trending support line. And the days following broke down of the support zone to fall off the cliff.
Yesterday found a support level of a less steep up trending support, after piercing through to check in on a support level at 30K. That was already 5 standard deviations away at 30K, and mathematically, a bounce was due... hence a 20% bounce to settle at about 36K. Currently it is about 10% up from yesterday's closing and the candlestick formation implies a significant rebound, if not a bottom bounce.
Longer term, BTCUSD <40K is a pretty decent deal, especially for those who previously missed the boat. But be careful, and be prepared. IF it can move 15% upside in hours, it can also move by a similar magnitude the opposite way.
We can be sure of one thing... volatility is here!
I'll leave you with this phrase - "A day in Crypto is like a month in equities."
So, draw lines, and pre-determine where you want to buy in or sell out, and "be like water" (Bruce Lee)
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