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Why Bitcoins Death Cross May Be a Bear Trap

Why Bitcoins Death Cross May Be a Bear Trap

pWhy Bitcoins Death Cross May Be a Bear Trap what is going on snipers Nayeem a little baby here I hope all of yall enjoying your day lets do our daily update for today and talk about bitcoins upcoming death cross and if yall dont know the death cross is where the 50day shortterm moving average crosses over the 200day long term moving average and its a very bearish sign in traditional markets however Im gonna talk about why I think this may be a bear trap and why we may see some further upside coming from this as we start heading towards these oversold levels so looking at the technical analysis here weve got several different support levels here in the bottom a resistance level right around eleven thousand nine hundred and seventy three and what I want to talk about first and foremost is this RSI and this is the 1day RSI if yall dont know what the relative strength index is it determines whether an asset is overbought if its over 70 or oversold under 30 and one example of this is you can see here as soon as this price went down the our side dip below 30 it showed it was oversold we saw this huge spike so that right there just using the RSI could have predicted that bounce back in bitcoins price and you can see how were now starting to find a little bit of support right along that 34 and that 36 are a side level but were still under 40 if you all dont know 40 is where you want to look for in terms of looking at a bearish RSI so thats right over here anything over 60 would be considered a bullish RSI so anything over 60 which will actually draw here in green is a bullish RSI so looking at this technical analysis right now you can tell that were still under 40 and whats interesting about that is its also coinciding with this death cross if this 50day moving average which is here in red starts to cross down over that means that the Bears had to sell off Bitcoin extremely hard for to actually create a death cross and in my opinion looking at the MACD as well will insert that indicator here this is the moving average Convergence divergence you can also see where the histogram determines buyers and sellers theres not as many sellers as we saw in December obviously because December was a huge rally so there was a lot more opportunity for these bears to take over and sell their positions but right now the Bears have sold their position so looking at the technical analysis right now one article that actually coincides with my philosophy of things is coin desk that posted this article why bitcoins death cross maybe a bear trap Im not gonna go over the whole article here but its really interesting and they actually say here to cut a long story short BTC had to drop by 14, 000 to push the 50day moving average so far towards the 200 moving average hence its likely that the Bears will run out of steam by the time the actual death cross occurs and then it backs that up by saying no the RSI showed oversold conditions when the death cross happened hitting at or hinting at the rally to come and this was from a previous death cross that occurred who knows very similar how the RSI was oversold right alongside with the death cross occurrence that eventually was a bear trap and I think that was back in 2014 so this has happened before and if you continue to read the article its really interesting theres one part where they talk about how two out of three death crops so far have yielded in breakouts not reversal so its an interesting article to look at but what I think is more interesting that I want you all to pay attention to is the technical analysis here and knowing when to get your position back into Bitcoin because people are still worried about putting the positions in a lot of people have even exited this market because theyve socalled felt betrayed and that bitcoin did not yield them Lambos and took them to the moon but at the end of the day I have to understand a market can only go up so much and it can only go down so much especially when theres intrinsic value especially something that had a thirty billion dollar market cap and then shot up to over 800 billion and then drop back down to 300 billion doesnt sound too bad right I mean 300 billion from 30 billion is still a significant increase and understand that regulations have not yet occurred and there are a lot of things under the rug for Bitcoin like for example you can see this mt.gox news story here talking about having tea GOx is now suspected for selling more Bitcoin if yall dont know they are entitled to return the capital to the holders of the MT GOx whole scenario that occurred in 2013 and 14 and now they have to sell their bitcoins and pay back their old customers and you can see at one point somebody was offered two hundred thousand Bitcoin and if you all dont know why they offer the bitcoins because if they sell a large amount like that in the market just traditionally it will cause a huge manipulation in prices so to avoid that and its actually negative for the seller because it will drive the price up and so its good to find more of those other buyers that are willing to agree on a price for all of the coins so in a sense there are still things that need to come out of the rug like the MT GOx scenario where it just needs to kind of pass through time and that whole situation just needs to get it just needs to pass by in my opinion a lot of things need to pass by here you know all these scam I SEOs things like that its just holding this market back from seeing its true potential but that doesnt mean you should have put a long position in the market knowing that this is the cryptocurrency revolution this is the technology is going to transform the world having that perspective will really give you confidence knowing that this market is still very small compared to most traditional markets and these levels are extremely low right now and my opinion these are really good steels I personally am dollarcost averaging my way into Bitcoin as we speak I made my first buy order today there was a 10 allocation of my capital and the reason Im doing that is Im fairly confident if not a reversal were gonna see at least some sort of a bounce soon you know were heading towards these lower support levels you can see here and the Fibonacci retracement were all the way bottom doubt for it actually zoom in here on a 4hour chart you can actually see here we can draw another Fibonacci retracement here to get a better depiction of whats happening in current time and you can see if we were to draw this out here and put this down to where we saw that previous support level back in January you can see how were about to start heading down towards this yellow Fibonacci retracement level in which were most likely going to see a bounce soon because were holding ourselves on top here I wouldnt be surprised for us to go back down to around 7, 200 and then see a sharp bounce so dollar cost averaging my position in through this point to eventually take advantage of the upside that is most likely gonna occur its probably the best decision in my opinion right now once again this isnt financial device but Im just saying its oversold and you know we went from 30 billion to 800 billion back down to 300 billion thats not that bad its healthy and I think theres a lot of further upside in this market and looking at the coin market cap in general you can see BTC dominance has been pretty stagnant and I also think theres going to be a ton of opportunities here with these all coins you can see some of them popping here 50 percent gains look at that mithril 24 percent gains for Cisco we actually had a trade alert of that feel on getting on trade alerts so you can see that there are a lot of opportunities in this markets know and I still believe that as long as we can go through all of the dirt and find the gold the silver the diamonds inside of this market were gonna be set in stone for the future as the longterm investors swing traders and day traders alike so with that being said yall this is a message of optimism in my appointment in my opinion I do want to apologize for the Bulls are coming article that I posted several weeks back I think I never had a chance to formally apologize about that that was one missed call I mean we have good calls and bad calls that was one missed call that I had but it was because we saw such a significant breakout and you know at this point Im fairly confident with what Im doing in terms of a technical sense and even in a fundamental sense knowing that regulations have pretty much been good over the past couple of weeks and also knowing that in a technical sense were extremely oversold were heading towards that bottom RSI level Im confident in putting more money into the market taking advantage of these swings and understanding this about the volatility not the price the volatility is where the money is made its not the price of Bitcoin whether bitcoin is twenty thousand a hundred thousand or a hundred dollars as long as its volatile theres opportunity in it so hopefully this articles helped some of yall and with that being said until next time snipers out youp

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