- September 10, 2020
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
You should have noticed by now that since the September 03 drop, Bitcoin has been consolidating around the $10000 mark. But what may be of particular importance, is the fact that this consolidation never closes a daily candle below that (10000) level. Can this be a coincidence and if not what does it tell us?
Well to answer that, I looked into the previous big Support level for BTC, the $9000 mark. Last time the price consolidated close to that level was from June 25 to July 21 (almost 1 month), before the aggressive rally towards +12000 started. That was 26 days of consolidation around $9000, coincidentally without making any 1D candle close below that level. That is the perfect example of strong accumulation if you ask me. So if we see something similar this time around, you probably know what it would mean.
It’s worth mentioning the similarities both the 1D MA20 action and the LMACD. See how every time the LMACD squeezed, it marked a BTC top and subsequent price drop. So the question remains, will Bitcoin again consolidate without making a daily close below $10000 and if so, for how long? Feel free to share your work and let me know in the comments section!
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