Hello guys, I hope you are doing great!
In this update -
We mentioned this possibility. It looks it may happen and here are you the signs that you have to wait for in order to go long.
Why I think we have more chances for uptrend in overall trend than for downtrend. In order to see major change in trend direction you need to get strong bullish signs on daily time frame. Do we have those signs. Well, the indicators that I am using are giving me those signs.
Firstly, RSI! RSI is showing bullish divergence on daily time frame. This is 3rd major drop from the beginning of the correction in December 2017. First drop finished without bullish divergence on RSI on 1D time frame but it has bullish divergence on smaller time frames on RSI.
You have to understand that first drop was fully emotional. We have drops of 3-4k in price in less than 24 hours. Drop from 13k to 9k in less than 24 hours. In this volatile market it is almost impossible to see bullish divergences on daily TF because for it you need time to develop. So, first drop finished without bullish divergence on 1D TF.
2nd drop finished after we saw bullish divergence on 1 D time frame. It was less volatile period and it has enough days to develop this formation. We have that situation again! If you are looking for bullish patterns you have big chances to see inverse H&S. If that forms, we can see nice trend reversal on BTC. I mentioned 7.7k as a target but you have to know that it is target in 15-20 days. Now it looks impossible but for the majority it looked impossible to see BTC at 6k after reached 9k+ but it did happen. Also, 15-20 days is almost 3 weeks and it is quite big time and everything is possible but the first target is previous resistance around 6800. Then breaking that resistance we can target 7.7k as next target area.
So, am I bullish? Definitely more bullish than bearish but I need confirmation for that. After forming bullish divergence on 1D tf of course that I have reason to be bullish but as I told without establishing support in this area between 6297 and 6097 bullish signs will disappear and I think disaster is coming. I do not want to scare anyone but if we do not bounce off 6100 I think the last area for that is 5900. Closing below 5900 wont lead us to the Moon for sure. I do not even think that it would find support in 5k area. So, I do not want to scare anyone but it would be scary to see BTC again below 6k.
I think that if my bullish signs get confirmed and once we reach 7.5-8k we can see again new downtrend to 5-6k area but it would not be something scary! It would be just part of long term accumulation zone before next uptrend. But going now to 5k area again would make huge changes in crypto because holders are at the end of their patience and new sell off would cause huge changes.
So, established support for next 24-48 hours at this level would confirm bullish signs. I am telling you what should happen in order to see uptrend again. I can wait for uptrend and then inform you because once uptrend starts, everything will happen in less than 5 minutes and I won't be able to give you advices in this short time.
You can tell me your thoughts about the situation, very interested in each opinion.
I will update this chart as new info comes up for my followers.
The information provided by @arjunsingh is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.
