Hello Riders , In this edition, I will be focusing solely on Bitcoin and Ethereum as I see something interesting in their charts. Stay tuned for more updates on the crypto market.
Last week, I shared with you some updates on the market situation, mentioning that SPX was testing its support level, NASDAQ had room to correct itself and catch up with SPX, and Bitcoin was performing well while waiting for actions to be taken in the stock market.
A week later we see that SPX has held its support level, NASDAQ has fallen and is testing its support level, and Bitcoin has remained consistent. Therefore, all that we discussed before is still relevant and going according to expectations.
Bitcoin Bullish Heikin Ashi candle on the 1M Timeframe:
February confirmed the first Heikin Ashi bullish candle since the beginning of the bear market, which historically has preceded all bull runs, with two exceptions when two major negative events occurred the month after the signal was confirmed (Bitfinex/China Currency devaluation) and C-19.
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January Signals + Money flow bouncing 1M timeframe.:
The heikin ashi signal adds to the ones confirmed in January in our Trend Oscillator (green circle, green continuation candle, and the green B on the oscillator).
Also on the monthly timeframe chart below we can note how the Money flow was about to flip red and bounced exactly at the limit remaining green, which is a positive sign as well.
Bull signal + Money flow bending up 1W timeframe:
Zooming in on the weekly timeframe, we can see that the BULL signal is still active and that the money flow, although still in the red, is finally turning upwards.
In this scenario, it is not ruled out that Bitcoin may drop to test the green area in the chart, which would be a good buying opportunity.
In the case of Ethereum we also note money flow going up, while price has managed to move sideways even when stocks were correcting.
In conclusion, if we only analyze Bitcoin, we can say that its chart looks healthy with bullish signs on the 1M chart still present.
In my opinion, the only thing that could reverse the bullish momentum is if stocks lose support of the divider band and fears of interest rate hikes become a reality, which would lead us into a second stage of the bear market.
On the other hand, if stocks rebound, the table is set for Bitcoin to continue its bullish momentum quickly.
Taking all of this into account, here's what I'm doing:
For Altcoin trading, only taking quick trades on charts of 4h or less, ensuring profits.
For Bitcoin, taking advantage of pullbacks to buy more at spot (especially if Bitcoin returns to the green buy area around ~21K and stocks remain at support).
For SPX and NASDAQ, taking long positions with stop loss below support.
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