In this chart, we are analyzing one of my strongest indicators for support/resistance in established trends, which is the EMA Ribbon. On the left side of the the chart, we can see how the Daily EMA ribbon acted as strong support during the bull market, as every time the candles approached or interacted with the ribbon as support it proceeded to bounce. Fast forward to BTC's current downtrend and you can see that the daily EMA Ribbon has acted as strong resistance. As marked by the arrows, you can see that every time that BTC has approached this band as resistance, it has soon been rejected after for a drop amounting to 35% (or more).
Currently, BTC seems to be getting rejected from this ribbon again, and will likely continue to test it until it can break through it, or confirm the rejection. On this chart, you can also see my indicator on the bottom, which tracks money flow and momentum. Currently, you can see that the momentum and money flow have come back to the "0.0" line, which is interesting because the last time BTC got rejected by the EMA ribbon, that indicator had crept back up to the 0.0 line as well. Not saying that it has to play out the same this time, but to me, it is certainly something that is worth noting.
As always this is not financial advice, and is merely to share how I'm viewing the market, as well as which tools I'm using. If you appreciated this analysis, please let me know by liking/commenting/following ORCA. Trade safely my friends!
Currently, BTC seems to be getting rejected from this ribbon again, and will likely continue to test it until it can break through it, or confirm the rejection. On this chart, you can also see my indicator on the bottom, which tracks money flow and momentum. Currently, you can see that the momentum and money flow have come back to the "0.0" line, which is interesting because the last time BTC got rejected by the EMA ribbon, that indicator had crept back up to the 0.0 line as well. Not saying that it has to play out the same this time, but to me, it is certainly something that is worth noting.
As always this is not financial advice, and is merely to share how I'm viewing the market, as well as which tools I'm using. If you appreciated this analysis, please let me know by liking/commenting/following ORCA. Trade safely my friends!