- February 1, 2021
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
This is a quick update on BTC’s short-term price action following the holding of the 1D MA50 showed on my last post.
I am taking you to the 4H time-frame on this study, as perhaps the most important development over the weekend was the fact that the 4H MA50 (blue trend-line on the chart) has held twice in the last three days. This is quite important as since the January 08 High, the 4H MA50 hasn’t supported any upside sequence. In fact in has caused three clear rejections.
The 4H MA50 is an important short-term indicator as despite January’s weakness, it has provided excellent support on Bitcoin’s late 2020 parabolic rise. In fact, as you see on the chart below, we can count 15 clear bounces since October 2020 and only 2 times it broke:
What does this mean for BTCUSD now? Well if the 4H MA50 continues to hold, we may start seeing another sustainable uptrend in February. In fact we have an emerging Channel Up, with the LMACD ascending since January 22 and about to form a Bullish Cross.
Do you think the 4H MA50 will hold and kickstart and new uptrend? Feel free to share your work and let me know in the comments section!
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