Bitcoin (BTCUSD) Price Action (18-Dec) @alanmasters

bitcoin ( BTCUSD ) is looking better at the start of the week. After so much bearish momentum, it is good to see some green candles for a change.

Hit LIKE, and let me share with you where I think the price is headed next.

• Right now I am seeing all of the classic signals that tells me that the bulls are back in play. I will describe these for you shortly and later we can move on to our support and resistance levels.
• But first, how to confirm strength in an up move? For this I use these beautiful lines you see on the screen called Moving Average, which is an indicator. I am using EMA10 (Green), EMA50 (Magenta), MA99 (Red), EMA100 (Blue) & EMA200 (Orange). As well as volume and momentum.
• This is something I share with my readers, followers, students and supporters all of the time. It is normal to see a retrace after a resistance level is broken. And I look up to these MA lines to know if price will continue climbing or break down. The main one for me is EMA10.
• If price remains above EMA10 (Green line) on the way up, then momentum is kept – also works the other way around. So as long as we see those little candles closing above EMA10, we can expect the BTCUSD price to consolidate sideways until its next move up. If EMA10 is broken, then you can expect EMA50 (Magenta) line to be tested next as support. This is just one indicator, we can use trendlines , fib. levels and more.
• The last red candle is a hammer , which is bullish and you can see that it is quickly followed by a green candle.
• Price stopped moving up exactly at $3660, which is where our EMA100 sits. At the same time, $3660 is the low that was hit on the high volume Doji of 25th Nov. (marked yellow on the chart), a classic support now turned resistance… This is an important resistance to break if BTCUSD wants to continue moving up.
• If this resistance is broken, and the red space you see on the chart, you can expect bitcoin to move quickly to $4159, which is where EMA200 sits.
• The green trendline on the chart can also work as support on a breakdown.
• In a nutshell. We need to break and close with momentum and strength ( volume ) EMA100 in order to continue moving up and hit our target. If this move fails, we retrace to test our support and try again, or move lower and test our next support.
• If all of our support levels are broken, $3200 – $3280 is next.

Let’s leave it here for now… We can do some more in my next update.

Hit LIKE my dear reader and enjoy the rest of your day.

Namaste.