AlanSantana

Bitcoin Recovers | Patience is Key (TRUST)

Long
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Ok. So yesterday I gave a very not detailed analysis for Bitcoin and some people would like to see more... I would like to comply.

The first thing is that the charts are always changing.
I can give a very strong argument as to why a certain move can take place yet we see everything change just after a few hours... Instead of helping, if you deeply believe what I wrote it can have the opposite effect.

But, be mindful now, even if I don't share a bunch of details here as to what I am seeing my experience and knowledge is always involved in what I share...

Let's get to Bitcoin shall we?


Bitcoin 4H Timeframe (Chart Reading)

We had a very strong bullish wave that started after the the low on the 20th of July.

Bitcoin grew by 45% by the time it peaked 10 days later on the 31st of July.

This is a very strong bullish move.
"After a bullish move it is pretty normal to have a retrace", specially after one that is as strong as this one.

Now, how far down Bitcoin retraces is anyones guess but we can use the tools we have here on Trading View for help.

We can see that BTCUSD retraced exactly to the 0.382 Fib. retracement level.

The bots/programs that are running the show, the whales, miners, me, you and everybody buying and selling... We are all part of nature and nature tends to follow certain specific mathematic numbers when drawing its patterns.

0.382 is part of the golden ratio in the Fibonacci sequence.

When there is a correction on a bullish move, we can see a retrace take place at the 0.382, 0.5, 0.618 or even 0.786 Fib.

Since we have a strong bullish move, an early recovery is possible and so, seeing the 0.382 hit combined with EMA100 gives us the first signal of a possible recovery.

Let's continue.

The RSI was pretty telling to me and right now it is giving a clear picture, it is trending straight up.

We looked at the 1H timeframe earlier as the signals here were not yet down. On 1H, BTCUSD , we saw bullish divergence with both the MACD and RSI , as well as the bullish pattern a falling wedge .

All these pointed me to say "Patience"... Bitcoin will recover; Just wait.

Now, finally, back to the 4H timeframe which is this chart we have above.

We can see strong volume incoming and prices moving above EMA50, but that is not all.

Just as we saw before in my previous articles, we have a bearish cross of EMA10 and EMA50. When a bearish cross shows up, prices tend to jump.

Are you happy now?
I hope so...

Thanks a lot for your support.

Remember to hit LIKE!

Namaste.
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Comments

great analysis
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