In our last Newsletter we said that a rebound was very possible and we established 2 clear resistances on the NASDAQ which would guide how the cryptos would react.
What we saw the last 2 weeks was a NASDAQ rally and a rejection of exactly the first resistance we established (lower limit of the Daily Rider Band) to then retest again the 11K support where we are at the moment.
Since these levels have worked so well we are going to update them again in this edition.
On the other hand, I have been sharing 2 charts on twitter that I consider very important to use as confirmation for a start of trend reversal for bitcoin, we will review them in this edition as well.
We are at a crucial moment for the trend change, since we see how 2 of 3 oscillators are breaking the downtrend on the weekly and monthly charts.
Markets still on a downtrend.
Potential trend reversal forming, not confirmed yet.
2 Key resistsance ahead on NASDAQ, make sure to TP on crypto if we get a bounce and nasdaq approached the red trendline.
Keep taking profits agressively from longs.
NASDAQ 1D chart
Rider Band Lower Limit: resistance is now at 11270.
Macro Downtrend line right at now at 12.6M , and will be at 12.1M in a couple weeks.
Remember that as long as NASDAQ is below these 2 levels it is on a downtrend, so take profits agressively from longs.
TREND REVERSAL CONFIRMATION
1W Model: I use my 3 favorites RSI, CCI and MFI
RSI has broken downtrend, CCI is about to breake it and MFI still pending. Ideally we want to see 3 out of 3 oscillators breaking downtrend for a long term reversal confirmation (and CCI above -100!).
You can copy this chart using this link: