Days when Bitcoin is ranging and not doing much can be boring when you are looking to do some day trading. Seems like on these days you are sitting around just waiting on Bitcoin to make a move. This is when you can be finding other assets to trade like other cryptocurrencies or even stocks. Or you can work on perfecting your strategy and backtesting while you are waiting on the charts to form your favorite setup.
Bitcoin’s momentum is cooling off
Looking at the Bitcoin charts on the 30 minute time frame (left) and the 5 minute (right) that the bullish momentum is cooling off and starting to point to a possible correction. This latest run is extremely overbought and it is time that we see a bit of a pull back to bring the price back to fill in some market structure around the 20,000 levels.
Trend is topping out
The serious uptrend that Bitcoin has been on recently is starting to top out based on the 200 period EMA. The 30 minute chart shows the price still above the moving average which is still signaling a bullish trend, but the EMA is starting to top out with the rest of the momentum indicators. The 5 minute time frame is showing the price break below the 200 EMA, but it has been going up and down for most of the day ranging around the moving average.
So once it breaks below the lowest low of the range, I will be looking for some short city action. I will be waiting on a retest of the EMA and looking to ride it down to around 20K. That’s just what I am waiting on, obviously not financial advice. So sometimes you just have to chill out while sitting around just waiting on Bitcoin to make a move.
Nothing said is financial advice.
This is for educational and recreational purposes only!
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