Disclaimer: Cryptocurrencies can fluctuate widely in prices and are therefore not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.
After a whole year of going down, Bitcoin and other cryptocurrencies, eventually, found the ground to firmly stand on and made their first significant rallies. Looking at the technical weekly chart of the cryptos we may state that the downtrend is over for good and we are in the initial phase of another big bull run.
If you take a look at a weekly chart of BTC/USD, you will surely notice how the crypto bounced off 200 sma/ema (simple exponential moving average). This is a very strong support level! Then, you can spot consolidation above the averages, which indicates that the sellers moved out of the way, and the buyers took over. Price stopped dropping and started moving sideways. What does that mean? It is a sign of accumulation. Smart money started accumulating cryptos at low prices! A few months of narrow ranges and bam...cryptos started going up again.
There was a short dip below weekly low last week and then a jump up (seen on daily candle charts). This is a strong sign that Bitcoin found its' short term support and the accumulation process started again.
Bullish candles on hourly charts (on the 4th and 6th of June) obviously point to buying interest and only increase confidence for buying Bitcoin again. I bought at 7600 level with a stop loss below weekly low of 7400. My analysis tells me we are in another bull market, and the best strategy now is to buy on dips.
Disclaimer: Cryptocurrencies are highly volatile investment products. Your capital is at risk.
After a whole year of going down, Bitcoin and other cryptocurrencies, eventually, found the ground to firmly stand on and made their first significant rallies. Looking at the technical weekly chart of the cryptos we may state that the downtrend is over for good and we are in the initial phase of another big bull run.
If you take a look at a weekly chart of BTC/USD, you will surely notice how the crypto bounced off 200 sma/ema (simple exponential moving average). This is a very strong support level! Then, you can spot consolidation above the averages, which indicates that the sellers moved out of the way, and the buyers took over. Price stopped dropping and started moving sideways. What does that mean? It is a sign of accumulation. Smart money started accumulating cryptos at low prices! A few months of narrow ranges and bam...cryptos started going up again.
There was a short dip below weekly low last week and then a jump up (seen on daily candle charts). This is a strong sign that Bitcoin found its' short term support and the accumulation process started again.
Bullish candles on hourly charts (on the 4th and 6th of June) obviously point to buying interest and only increase confidence for buying Bitcoin again. I bought at 7600 level with a stop loss below weekly low of 7400. My analysis tells me we are in another bull market, and the best strategy now is to buy on dips.
Disclaimer: Cryptocurrencies are highly volatile investment products. Your capital is at risk.