💡 My most essential Bitcoin idea. (Tutorial and Analysis)
My most essential Bitcoin idea. (Analysis and Tutorial)
Hello, dear TradingView members.
This idea is an important idea about Bitcoin.
200W EMA is broken.
200W MA was not what held the price up, and it will not push it back up either. At least not by itself.
This support that held the price up today was mainly because of the ATH in the first week of December 2017.
When we analyze an asset that once was worth around 60 THOUSAND dollars per share, we cannot just use EMA or, even worse: a single MA to say if it is going up or down.
Sure we all have our errors while doing analysis, but this is simply wrong to just use one indicator to say what will happen to Bitcoin! An asset with the most manipulations and pumps/dumps with a single tweet of a car manufacturer.
I am sure EMA is a good indicator (Not MA since it is not as powerful). However, if you are looking for a better way to eliminate the errors, you should use other methods too.
Use Fibonacci retracement, RSI, BB, MACD, and other known indicators.
I also posted a Bullish scenario, but I used many other factors, which still did not work out and failed.
We insist on finding a way to tie our indicators to the movements but not all the time. These indicators are helpful, but sometimes other factors are the key to a better forecast.
For example, I have read most of the charts in TradingView about this Bitcoin correction. Only a few of them pointed out that the market had an extreme resistance which caused a long-term resistance in 2017, which is the same level causing this dump rejection.
You guys remember the 20K Bitcoin, right?
Now back to the analysis:
This 20K level is undoubtedly our most substantial support on the way down.
Our second support is also shown on the chart, backed by the Fib retracement and the Bollinger Bands.
The Third and the last support is around the 13K level, which is also vital; I will talk more about it once we get there.
Furthermore, as for our resistance level, watch out for the 200W EMA level!
Moreover, the descending trend is forming the RSI right now.
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