Its price just broke below EMA10.
(This is a signal)
The peaked 15-Aug .
We have lower highs, red histogram and downward momentum... Here is the chart:
The peaked 30-July and it has been printing lower highs since... Here is the chart:
In conclusion, first the peaked, later the and finally BTC .
This means we have divergence with these two indicators. BTC moving up (higher highs) while the indicators are moving down (lower highs)...
After the strong wave starting July 21st all the way to August 23rd, we are not surprised if we see prices decrease.
How far down can it go?
Looking at the 4H timeframe, we can see that EMA100 was tested as support on 26-Aug . but this resulted in a lower high 28-Aug. compared to 23-Aug ., meaning, we are aiming to test EMA200 next which is sitting around $45000 (this is based on the price action around the EMAs on the 4H timeframe).
See the chart:
Very simple right?
Anyways, the charts are always changing...
So whatever action you take make sure to prepare for all potential scenarios before-hand (have a plan).
Trading, the way we do it, is not about predicting what will happen with a pair but rather taking action... We buy and we wait.
Conditions for change
We pass the ball back to the bulls if prices move and close above EMA10.
There can be sideways consolidation as well while the altcoins grow... Another possibility to keep in mind.
Thanks a lot for reading.