Bitcoin Drop Explained, Don’t Get Too Comfortable

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Bitcoin , BTCUSD , on the 1H timeframe.

This chart describes this recent drop but in little detail… You can find it here:

Now, don’t get too comfortable.

Bitcoin has been doing numbers and not following TA lately.

Also, you can see a wick take place and then prices resume growing… So be careful.

Do not use this information to trade.
Do your own research.

Now I will read the chart for you in detail.

Bitcoin Drop Explained!

Let’s read the signals on this chart.

1) We have a shooting star on the new peak. (This is a bearish signal)
BTCUSD hit $18977… Wow! Great job Bitcoin .

2) Bitcoin hasn’t been doing much correction/retrace but this is a normal part of market action. Things move up and down, up and down, so this is normal.

We wouldn’t be surprised to see Bitcoin retrace, in fact, we welcome a retrace as this would signal HEALTHY growth.

3) The TD Sequential is now showing a negative count.

4) The MACD is showing bearish divergence and also a bearish cross (the MACD line crossing down the Signal line).

5) The MACD histogram is going red.

6) The RSI hit overbought 18-Nov. and is now starting to drop.

Note: Technically, Bitcoin is strongly bullish … Prices remain above EMA10, EMA21, and EMA50.

Only after Bitcoin breaks and closes below these levels we start to consider the bearish bias.

The above are what I call “early signals”.

Do not trade on this chart alone, do your own research.

We don’t trade these setups, we consider them to be high-risk and hard.

Instead, we look/focus on the smaller altcoins which are very, very, very easy to trade.

They have lower risk and higher potential rewards… I hope that makes sense.

Any questions?

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Namaste.