MACD giving signal for trend reversal, waiting for Golden Cross-The market has been playing the same since the last chart. MA 200 has been a major support, did not let BTC price to cross it. Also sent pushed it up however as discussed in the previous charts " once a support is broken it becomes a resistance ", hence our level 2 which was previously a strond support has now become a strong resistance.
MACD shows a loss in Bulls potential, as the market has been in a bear sentiment for the past few days.
{Always keep in mind, before taking a long jump, the price has to take a correction. This way, new buyers get the chance to get into the market and paper hands are removed.}
Coming back to the chart, because MA 100, and 50 were present below the zone 2, it was hard zone due to multiple resistances and all the bull power exsausted there and because of that, the price was not able to break the upper wall of zone 2 and faced rejection (this is where we are right now).
What to Expenct now?
The 200 MA is continuosly providing support however, everything in this world has a breaking point. With multiple hits, even the strongest MA like 200 can be broken and psychologically setting a bearish trend is far easier than creating a bullish sentiment in the market. Most of the traders are fearful and the red in chart makes them panic and they sell causing more panic. This is dominos effect.
There is a chance of a Golden cross over at the mark X , this will give a bullish push to the price. This will happen when MA 20 will cross over the MA100. This should happen near about the base of zone 2, so that the bullish power helps in breaking the resistance of zone 2 and other MAs.
For the support at this point, we have 0.786 Fib level and MA 200, but they can't handle more pressure as well.
The doji green candles & heavy red candles shows that bulls are finding it hard to keep up with the bears.
Still the cross over in MACD is a good signal (marked).
When ever the blue line in MACD crosses the orange line (signal line) from botton to up, it is a bullish signal.
It should not come under orange, if that happens, we should get ready to see the $65,000 zone.
