We look at a lot of different indicators. Red days and green days over a number of days start to show patters. Patterns that can help to predict future movement. For example, watching for things like higher highs or higher lows, lower highs or lower lows. Watching for triangle formations, wedges, flags, reversal candles, etc.
One of our favorite indicators to watch with Bitcoin is the moving averages. Moving Averages are just another indicator to watch and are not always reliable. They are just another tool and shouldn't be depended on solely for accurate predictions.
In fact, when it comes to some assets the MA's don't help much at all!
That said, the 10 and 50 day MA's have been helpful when it comes to Bitcoin. We've found this to be more true the older Bitcoin gets. It's no crystal ball, but in TA (Trend / Technical Analysis) there is no such thing! 😉
Right now Bitcoin is at about $57,650. The RSI is around 54, while the 10 and 50 day moving averages are in a bearish pattern there is a possible bullish turnaround coming.
The 10 day MA is climbing and the 50 day MA has flatlined and appears to be coming back down. If these two lines cross it will be a "golden cross" and a bullish signal. This could happen this week if things continue to move at current rates.
The fact that these two lines crossed recently (a death cross) was a bearish signal but sometimes a death cross can simply indicate that there is a slow down in activity. And a slow down doesn't mean a stop!
Cross your fingers, 🤞 let's hope we see a reversal of that death cross and back to a bullish golden cross this week!
Keep watching the charts! 📈
Please note : this is opinion and should not be taken as financial advice.