- The charts never lie and, as you can see, the bulls successfully defended the 200 weekly moving average and previous swing high from 2018. We didn’t even close a candle below the 200MA!
- We need to keep in mind that the 200 weekly MA is the strongest MA of all of them, and this zone is considered a strong support by huge institutions and hedge funds.
- If we drop below the 200MA for the first time, then you can bet on a 10-year bear market and sideways boring price action. You don’t want this to happen, even if you are a bear. Yes, you want to buy cheap bitcoin at 13 000 – 6 000, sounds good, but you will wait 10 years for another bull market cycle.
- But for now, everything is perfect and we also hit the 0.382 FIB retracement from the previous impulse wave on the LOG scale. 0.382 is the second most important FIB level after 0.618. If you calculate it: 382+618 = 1.
- If we take a look at the MACD indicator, we can spot a bullish divergence on the histogram and also a bullish tick. So this tells us the bears are running out of steam and the bulls are gaining strength again.
- A lot of traders are very bearish . Altcoins like ADA, LINK, SOLANA , XRP, etc. will perform poorly in the next bull market in my opinion. These altcoins are great, but they need more time.
TOTAL Crypto – Key support defended! Above 200MA + 0.382 FIB
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Professional trader and analyst. My specialization is in Elliott Wave Theory, Fibonacci tools, chart patterns, candlesticks, and price action. To analyze market structure, I use market profile and volume profile in my trading system. To analyze trends, I use trendlines, VWAP, and simple moving averages.