Is Bitcoin (BTC) Crash Really Over?




 

Introduction

In today's update, we'll explore a powerful indicator to measure Bitcoin's bull runs. When this indicator turns green on a weekly timeframe chart, it signals a bullish trend. Conversely, when it turns red, it indicates a long-term bearish trend. Let's dive into the current market conditions and analyze some key indicators.

 

Supertrend Indicator:

 

Historical Performance of Supertrend Indicator:

 

  • Green Signal: Indicates a bull run. For example, in May 2019, the indicator turned green, signaling a bullish trend that followed until a brief period of red during the COVID-19 crash.
  • Red Signal: Signals a bearish trend. Historical data shows significant drops during these periods, such as the long bearish trend post-December 2017.5d4e325422b0b3b96a43e7eb773bc6b85ad1961219925080265ebff504c803d0.png



 


ADX and Directional Movement Index

The Average Directional Index (ADX) and the Directional Movement Index (DMI) provide additional insights:

  • Negative Directional Index (Red): Currently crossing above the Positive Directional Index (Blue), indicating that bears are gaining control.
  • Positive Directional Index (Blue): Indicates bullish control when above the red line.90232870161e5df372e49e4d004acdaefe8714c05080d69b06754c9d5fdcdd6c.png


 


Current Market Analysis

 

Weekly Time Frame Chart

Bitcoin is moving inside an ascending channel and recently formed a double top near $73,000. After rejection from this resistance, the price is approaching the channel's support.

99cd24f50fbd327be8d481d2d533ac5ee8ba1c609298b1b588c24bff23ecdd01.png

 

Key Support Levels

  • Channel Support: Critical to maintain the current bullish structure.
  • Super Trend Support: If broken, it could signal a shift from green to red, indicating a long-term bearish trend.
  •  

Impact of Support Breakdown

If Bitcoin breaks below key support levels, we could see:

  • Weekly Close Below $56,500: A potential indicator of a bearish trend, leading to a breakdown of the super trend and channel support.
  • Directional Movement Index: Currently, the ADX is moving down, suggesting low selling pressure despite the bearish cross. However, if the ADX starts moving up with the orange line above the blue line, we could see significant sell-offs.

Conclusion

Bitcoin's current price action is at a critical juncture. Monitoring key support levels and the ADX/DMI indicators will be crucial in predicting future market movements. Stay tuned for more updates and consider subscribing to our channel for more trading signals and analyses.

 

Additional Resources

For more trading signals, you can join me as a YouTube member or a Patreon member. Links are as below:

Resources

  1. https://www.youtube.com/c/moon333/join
  2. https://www.patreon.com/moon333

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