Why is Everyone Freaking Out? Bitcoin is Still Bullish! (BTC)
I hear a lot of people calling for the end of the world, but I wouldn't jump to doomsday conclusions just yet. There's not denying that today's candle is currently bearish engulfing, but look at where it bottomed - exactly on the 50 EMA (in orange.) The same EMA, that has been torturously resistive for this entire bear market. Did you really think that we would just rally higher, without at least turning to it to test it for support? Turning around to test such a critical resistance level is perfectly natural, since we have recently surpassed it. Admittedly, I didn't think a test of the 50 EMA would come this soon, or this abruptly, but it has. So, the 50 EMA is very important to hold right now. If we can hold the 50, then I do believe that price can continue it's ascent to the top of the downtrend channel.
On the RSI, we were getting into overbought territory. However, we are now all the way back in neutral territory. The MACD is beginning to turn to the downside too, but has not yet produced a bearish crossover. So yes, today's price action may be scary, but I'm not too concerned from a bullish standpoint. As long as the 50 EMA and the triangle hold as support, I believe this could simply be the market testing former critical resistance (50 EMA) for new support. If we get that support, that would actually be very bullish, and the top of the downtrend channel will still be the target.
On the other hand, if those levels are lost, I will probably be forced to swallow my pride and chalk up a loss for the trolls to rage about. They say it's wise to never feed them, but I've always loved to watch the dogs eat. Anyway, if price falls below the triangle, and particularly the December low, I suppose we would then be looking at a different technical picture. With that said, those developments are currently nonexistent. So, the only thing we can see, is that BTC has jerked back to test the 50 EMA for support, and it is currently holding. In summary, I wouldn't write off the bull just yet. In my eyes, I still see a lot of technical evidence to support the argument that the bottom is in. That evidence would be further confirmed, if the 50 EMA holds as support.
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I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
On the RSI, we were getting into overbought territory. However, we are now all the way back in neutral territory. The MACD is beginning to turn to the downside too, but has not yet produced a bearish crossover. So yes, today's price action may be scary, but I'm not too concerned from a bullish standpoint. As long as the 50 EMA and the triangle hold as support, I believe this could simply be the market testing former critical resistance (50 EMA) for new support. If we get that support, that would actually be very bullish, and the top of the downtrend channel will still be the target.
On the other hand, if those levels are lost, I will probably be forced to swallow my pride and chalk up a loss for the trolls to rage about. They say it's wise to never feed them, but I've always loved to watch the dogs eat. Anyway, if price falls below the triangle, and particularly the December low, I suppose we would then be looking at a different technical picture. With that said, those developments are currently nonexistent. So, the only thing we can see, is that BTC has jerked back to test the 50 EMA for support, and it is currently holding. In summary, I wouldn't write off the bull just yet. In my eyes, I still see a lot of technical evidence to support the argument that the bottom is in. That evidence would be further confirmed, if the 50 EMA holds as support.
Be sure to hit that follow button, and find me on Twitter, via the twitter link on my profile page, for more MagicPoopCannon content!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
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