We are waiting for the weekly candle closure for the next Bitcoin ( BTCUSD ) weekly (W) update. While we wait, let's take a look at the daily (D) timeframe, here I marked the different important resistance and support levels on the chart, we are also going to be using longer period EMAs... Let's get started!
We start by taking a close look at the Relative Strength Index indicator or RSI.
This indicator is looking pretty interesting to me...
RSI BTCUSD (D) | Higher Low (HL)
- The recently hit its lowest since November 2018, and yesterday's low ended up in a higher low compared to this date.
- The next thing to notice is the hidden with the .
Prices for BTCUSD in Dec. 2018 closed lower compared to the present time ($3122 low compared to a $3850 low), yet, the closed higher. This is what we call hidden , prices closing higher (higher low) while the is closing lower (lower low).
RSI BTCUSD (D) | Lower Low (LL)
BTCUSD Hidden Divergence
Exponential Moving Average or EMA
When Bitcoin ( BTCUSD ) dropped prices bounced exactly at $3850 which is just above EMA2500.
We can see huge buying/green on the 13 March and prices moved and closed above EMA2000 and MA1500. As it is the first time EMA2500 is tested as support, a bounce follows before this level is tested again.
- If the bounce ends up in a higher high compared to the last peak, then prices will retrace and produce a higher low before resuming higher.
- But if after the bounce we end up with a lower high compared to the last peak, we will see BTCUSD hit a new low, meaning, going lower than $3850.
We are still waiting for the weekly candle closure to do a new analysis but early signals here are telling us that prices for BTCUSD can bounce but another strong drop is possible before the 2020 halving... Regardless of what happens or how deep prices go, we expect a long-wick just like yesterday and AFTER the halving 2020, sustained long-term growth.
Thanks a lot for your continued support.
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