DAG/BTC Parabollic moves

٧ نوفمبر ٢٠١٩

As shown in the chart above, we are seeing DAG/BTC in a parabolic increase since July 15th of the current year. A parabolic increase is a great way to make money, yet a very risky play, if the signs of a possible break are disregarded.



We ask a series of questions to determine the technical status of DAG/BTC


Is this parabolic increase about to break?


No, right now, we se every little signs of weakness but therefore a lot of signs of strength.


For example, the volume shows us very clearly that during the whole move and even at these high levels buyers are still stepping in and sellers seem to be non-existent.

Looking at the TJ-Index, which is made out of 15 different indicators, we clearly see a very high number, indicating us confluence for the bullishness we see, since almost all of the built in indicators and conditions are still very bullish.

What is the best entry? Which levels can we expect?

Entering DAG/BTC at this point in time is most likely not the wisest decision an investor/trader could make. We are at what seems to be the end of a parabolic advance, which is mostly followed by a retrace to previous key-levels.

Here, we are especially looking at the key-area of 153971 and 145052.
This particular area was a key area of resistance for almost two full months. Nevertheless, it broke on the most recent push upwards, after hitting the parabolic curve once again.


Based on the fact that we are right now at a HTF resistance, in a strong yet overbought structure, which is slowly but surely locally loosing on strength, the only reasonable expectation we can have right now, is a retrace in the mentioned key-area.



A retrace into this particular area would also mean two things. 


One would be a Support and Resistance flip, which is mostly a very bullish sign and asks for a trend continuation.

Second, a re-confirmation of the parabolic curve. We see in such parabolic increases very often a consistent re-confirmation of the main curve which acts as a trend line of sorts.
Even though, the most likely and desired option is a retrace, there is a worthwhile chance that DAG/BTC will just continue this most recent push through and above the local resistance level. In that case, we would be looking for a support and resistance flip at that particular level of 196000.


Conclusion

DAG/BTC is definitely a very bullish pair and is most likely to be one of the top performers for the upcoming months. Nevertheless, an unthought entry can bring an unwanted drawdown.
A full-size entry at the local levels is surely not suggested, since a retrace into the area of 153971 and 145052, looking at the history of DAG/BTC, is the most viable and reasonable scenario to occur.