it worked really well for me here and not not only for kryptos but generally for for stocks as well. So what are we going to do we are have a quick look at the Bitcoin chart on the daily Bitcoin chart on the daily is what we can see a continuation of what we saw yesterday, this is the price action here.
We had this ascending wedge, I said numerous times it’s a it can be it can be and it most likely is a bearish pattern. And then people come in and said, you know, it’s we’re in a bull market and everything and Yes, we are. But you still have these patterns.
And sometimes they turn out to be to be the bearish just a short term bearish pattern. However, as I said yesterday, he’s actually bullish and bearish, it’s a bit difficult to spot because you have still an uptrend. But these are losing momentum, these tops and also the lows, they are losing momentum.
And there are chances to break to the downside, which is what we did. Luckily, not with a lot of momentum, which is nice, because I guess the reason for that is that we have this 20 day moving average here as very close support. So that is healthy.
That is what cardano doesn’t have at the moment, The support levels are quite far away, at least the moving averages are quite far away, moving average, just the sort of the average price over the last 20 days, then we’ve got the 50 day moving average here, which would be the next major support for me,
and what we would you know, what, what could happen now that we are trading in here on here, actually, you have the 200 day moving average. So unfortunately, we fell below the 200 day moving average, it’s a bit difficult to spot because it’s also a yellow line.
What could happen we could trade between the 200 day moving average now and the 50 day moving average for a little moment, as sorry, the 220 day moving average for the moment, we’re really at the moment squeezed between these two prices, again, between between this level and you know, we need to see in which direction it breaks out.
Do we have a continuation of the short downtrend I believe then we could even drop to the next the 50 day moving average which is just below 40,000. And this is just what can happen. But even then, when were we at like 40,000 you know, not even not even like three weeks ago.
So it’s important to understand that here on the bitcoin price chart, there are other resistance and support levels. I didn’t I didn’t draw them all in but I put it I put my focus on cardano but that is what could happen I believe also because on the daily actually on the daily we have a bearish move of the of the MACD, so at least you know don’t get me wrong I don’t expect it to drop I think it might stay on that level it might move sideways a little bit.
The MACD on the daily shows a bearish momentum at the moment and also we can see on the RSI which is again actually a good thing. The RSI is actually not in overbought territory anymore, but we can see that we are losing momentum.
So we have lower highs here of the MACD. However, we have higher lows. Right? So again, we have something like a we have something like a wedge forming. And we need to see what’s going on with that. But it shows that yeah,
it shows that there could be a reversal again, could potentially move up again here on the RSI which is the momentum indicator which then indicates that this in this correction here. It could really just only be a short term one and that’s what I think because you’re on the weekly
as well and it’s another confirmation why I think we’re actually we’re actually in a bull market and we might see some more moves to the upside soon. So that’s why I’m not too worried. First of all again the RSI we can see that we are not in overbought territory.
And we are still over 50% so that in this indicates to me there is space to the upside and then very importantly and that’s what I’ve been talking about various times on this channel, and we’ve been waiting for that.
We’ve been waiting for this positive move on the weekly. It hasn’t quite happened yet. It’s just about to happen. And that is why this week is so important for Bitcoin. This week is so important and because You know, on the weekly, which is sort of more meaningful for the longer term trend, on the weekly, we can see that here the MACD histogram is about to turn green.
So the next weekly candle will determine that. And if we stay like that with a red candle, it might mean that we are not going to get there. So we want to close, higher, we want to have a green candle here, which then indicates really a bullish momentum for Bitcoin for at least a few weeks, I think. I mean, it’s never guaranteed,
but it is with a higher probability for me that we could then see this play out and go into the green. And this could signal that we’re going to see more moves to the upside on Bitcoin that obviously influences cardano then as well. Now let’s have a look at the daily first for cardano. What I said yesterday was that this sort of consolidation could take at least five days,
if we assume there is a bull flag forming with a bull flag, what I mean that we have this flagpole here, which started on the 10th of August. I mean, we had a move to the upside before. But this clear bull flag, this flag pretty much this flag post, plus now this consolidation, so this,
this flag started forming on I would say here on the ninth of August, right?
So or even on the 10th of August. So if we assume that this is a bull flag, you know, what we normally expect is that huge pump. And then we see in a channel, this down swing, right? And I just want to show you how it No, we just like to take a look at a textbook how that normally looks is that so you have a bullish flag, you have that flagpole,
and then you have this channel where we are trading within a channel. And then at some point there will be a breakout and the breakout will happen when we move through this upper support level. So let me know if you see that as well. I see that.
They never really look exactly how in the textbook. Well sometimes they do but oftentimes not. But you can see this flagpole here. And this can consist of various green green candles. That’s not a problem. But I think we can see this channel here. And what normally happens, we need to see a retracement of not more than 50% of that flagpole.