BitcoinLong
🅱️ Bitcoin | Let's Go Back To Basics (1, 2, 3)
Updated
Let's go back to basics in order to determine where is Bitcoin at right now.
#1 Break of major downtrend
You can use either the linear (arithmetic) or logarithmic scale and both will yield the same result.
Bitcoin is now out of a major downtrend.
BTCUSD W Log:
BTCUSD W Linear:
#2 Accumulation phase
After moving out of the downtrend, Bitcoin enters accumulation from November 2022 to January 2023.
BTCUSD W Accumulation phase:
#3 Bullish breakout
After accumulation Bitcoin undergoes a bullish breakout.
BTCUSD W Bullish breakout:
- This bullish breakout produced the highest prices in more than 8 months.
- Bitcoin prints4 green candles for the first time since August 2021.
- Bitcoin produces the highest buy volume in years and also moves above EMA10 and EMA21.
- This bullish breakout is also supported by the strongest RSI in many years.
These are the basics.
- Additional signals can be found by looking at the MACD, it is the first time it goes bullish coming from a new low since May 2020.
- A higher high after more than a year of lower lows.
- No new lower low since 21-November 2022.
Conclusion
Technically speaking, Bitcoin is now within the January 2023 bullish breakout.
This is the most recent and relevant move for this Cryptocurrency, the rest is past history.
As long as Bitcoin remains within a higher low compared to November 2022, a higher high is expected next.
This is basic technical analysis based on price action.
Thank you for reading.
Namaste.
#1 Break of major downtrend
You can use either the linear (arithmetic) or logarithmic scale and both will yield the same result.
Bitcoin is now out of a major downtrend.
BTCUSD W Log:
BTCUSD W Linear:
#2 Accumulation phase
After moving out of the downtrend, Bitcoin enters accumulation from November 2022 to January 2023.
BTCUSD W Accumulation phase:
#3 Bullish breakout
After accumulation Bitcoin undergoes a bullish breakout.
BTCUSD W Bullish breakout:
- This bullish breakout produced the highest prices in more than 8 months.
- Bitcoin prints4 green candles for the first time since August 2021.
- Bitcoin produces the highest buy volume in years and also moves above EMA10 and EMA21.
- This bullish breakout is also supported by the strongest RSI in many years.
These are the basics.
- Additional signals can be found by looking at the MACD, it is the first time it goes bullish coming from a new low since May 2020.
- A higher high after more than a year of lower lows.
- No new lower low since 21-November 2022.
Conclusion
Technically speaking, Bitcoin is now within the January 2023 bullish breakout.
This is the most recent and relevant move for this Cryptocurrency, the rest is past history.
As long as Bitcoin remains within a higher low compared to November 2022, a higher high is expected next.
This is basic technical analysis based on price action.
Thank you for reading.
Namaste.
Note
🍀 MY TRADING STRATEGYWake up in the morning and head straight to the bathroom, maybe some oil pulling or brush your teeth, or both to start your morning.
A hot shower if the weather is cold to relax your body... Can be brief, can be long.
No food early in the morning as trading is about to take place.
Water, maybe some liquid supplements but all light because meditation is always the first step.
Stretch your body in preparation for what's to come, together with some light exercises, 10-15 minutes to start, contemplation, deep breathing, I can already see the sun.
Light food is now possible but optional as I get dressed for an hour of walking/running, trading is about to take place.
The first lap goes for several miles, the stop happens at the river, meditation, sun light... It is all really important, this is the best strategy for trading success.
Few more miles are needed to get back in the car.
Feeling all good and relaxed, looking forward to updating the charts, reviewing my trades, today's results.
Can't go straight to the computer after leaving the car, a few minutes are needed to become centered, relax, take your time.
It is wise to read a few pages before I take my jump, work is not going anywhere, this strategy produces the best results.
Read hundreds of pages and become hungry, even tired, I need some rest...
But, what does all this have to do with trading?
Patience.
Develop healthy habits.
Live a balanced life and opportunities will present themselves.
If we rush to join the market, you might not be able to find the right calls even if they are in front of your face.
Focus on your learning, health, your mindset, invest in yourself.
The personal growth resulting from a stable life will take care of the rest.
True story!
Namaste.
Note
Going back to basics, last week Bitcoin printed a very strong candle that produced the highest price since June 2022, nine months ago.As we focused on the end of the downtrend, the following accumulation phase and later bullish breakout, this strong 9-months high is called a continuation of the initial bullish breakout.
A bullish continuation is a bullish confirmation.
Again, this is looking at Bitcoin (XBT) from the eyes of a beginner, the basics.
The higher Bitcoin goes, the stronger the bullish bias becomes.
The higher Bitcoin goes, the stronger the probabilities of a higher low when the next correction comes.
✔️ A bull market is defined by higher highs and higher lows.
✔️ A bear market is defined by lower highs and lower lows.
The last low happened in November 2022, now 4 months ago.
Instead of seeing new lows, we are seeing prices hitting new highs.
We are out of the downtrend and now trading within a newly established uptrend.
This newly created uptrend is invalidated only if Bitcoin moves and closes below the November 2022 low around $15,486. Any trading above this level and the bulls are in control.
I hope you find this information useful.
Namaste.
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