Get your OVER 9000 memes ready!
3 signs of trend reversal
Chart #1: BTCUSD / BITFINEX / 4H https://www.tradingview.com/x/CN8XWc85/
Bullish TK Cross : Ever since the crazy BTC rally of April 12th, we had a bullish TK cross on the 4H chart. The cross itself is not a strong enough signal since we had so many fake outs before. But one of first bullish signal nonetheless.
Prices above the cloud : With the bullish TK cross, the rally remained strong enough that we broke out of the red clouds in a convincing fashion. Especially the fact that the prices remained so strongly above the clouds gave me the second signal. There was a slight pull back the prices remained well above the cloud. Personally these two signals would have been good enough for me to go long.
Prices breaking above the OVERALL bearish trend line : This is the most powerful signal. If one is still not convinced that there is a trend reversal, I have no words. The purple bearish trend line is so massive that I thought there would be a formidable resistance. BTC briefly stopped there but NOPE cya. GET ON THE BTC ROCKET. WE ARE GOING TO THE MOON!
How far is BTC going up in the short-term?
Chart #2: BTCUSD / BITFINEX / 1D https://www.tradingview.com/x/EhZMhke3/
Don't get me wrong. I am happy that we are seeing a trend reversal but we still have LONG ways to go.
If you look at the 1D chart, even with the recent bullish action, bullish TK cross did not occur in the 1D chart. I want to turn your attention to the two red circles. If the past is any indicator, even with a sizeable bullish run of mid-February, it takes ANOTHER strong bull run for TK cross to happen. Thus, I think BTC will either pull back from current price or push a little more to the Kijun Sen line. Then BTC may pull back and find the purple trend line as strong support until it can gain enough buying pressure to enter the cloud. I think by the time BTC convincingly enter the cloud, bullish TK cross will occur. As I mentioned before once we enter the cloud, edge-to-edge price action is definitely possible. I am not sure what "edge" the price action will use as its top but two possibilities are in Chart #2.
Overall, the bulls are back. What a great time to be alive.
Have a great weekend.
Legal Disclaimer: I am not a financial advisor. None of the words, charts, jokes, and expressions written in this blog post should be read or interpreted as any form of financial or investment advice. It is purely for an entertainment purpose only. This post is my thoughts and opinions. I can be wrong. I have been wrong and I will be wrong many times in the future. This blog is for you to flame me how bad I am at this and call me out when I am wrong. It's for your entertainment ONLY.