On today’s BTCUSD analysis I stay on the medium term, looking at the 1D chart and what trading signals this pattern can provide.
Since the June 26th market top, Bitcoin as entered into a very structured Channel Down (basically extending into the 1W time frame). This pattern has never broken actively (only marginal break outs whose candles still closed within the Channel), thus providing strong Sell Entries on its Lower Highs and Buy Entries on its Lower Lows.
*The LMACD optimal entry indicator*
The indicator most standing out to me in projecting those entries is the LMACD. Right before it makes a Crossover (indicated with the red arrow) the convergence of the two lines (red shape) provides the ideal Sell Entry. Similarly right before it makes a Crossover (green arrow) the convergence of the two lines (green shape) provides the ideal Buy Entry.
*Where are we?*
Right now those lines are again converging into a potential Crossover, thus issuing a Sell Alert. This is a strong short signal for medium term traders (not long term Hodlers, it is obvious that Bitcoin’s long term trend is ), who wish to pursue a sell towards the next 1D Supports (8350 and 7340). Ideally and since we are trading on the upper band of the Channel Down this can be a two-tier trade with $8400 as the 1st target (above the Channel’s middle dashed line) with $7500 being the extension if the middle line is crossed.
Published at Fri, 08 Nov 2019 20:34:49 +0000