XForceGlobal
XForceGlobal 2 minutes reading from Bitcoin

$BTC Classical Technical Analysis – $BTC Classical Text

BTC Classical Technical Analysis 20, 100, 200MA

(1/6) Keeping things simple is crucial when looking for support/resistances in price. Zoom out. One of my main ways to keep things simple for larger timeframes is to simply use the 20, 100, 200 MA's to help define the trend.

(2/6) The 20, 100, and 200 moving averages are used because they are calculated algorithmically for all the main timeframes (15m, 1H, 4H, 1D, and 1W) and intertwine with each other for major support/resistance levels of all timeframes.

(3/6) The 20MA has been historically accurate for support and resistances within bull and bear markets. You can't deny that we were in a bear market this year. We were. But we can't stay below the 20ma forever.

(4/6) The 100MA has been the middle ground for this bear market. We've tested it three times (red circles). Once we break it with confidence, the 200MA awaits to be retested with almost certainty.

(5/6) The 200MA is one of the most crucial supports and acts as a magnet during times of sideways movements. This is where price will be volatile. We've only tested the 200MA only once during this whole downtrend (396 days so far).

(6/6) Without a doubt, I have high conviction that we are very close in relative time that we will retest the 100m and 200ma sooner or later, respectively. Bear markets nor bull markets last forever.

This post is based on this twitter thread.

Comments

Please login to comment.