Another definition of an uptrend or a downtrend is whether price is above the EMA Ribbon or below it. When we are above the ribbon it tends to act as support level and is a good entry position. While if we are below the ribbon it act as a resistance level and a price point where you should book profits.
BTC on daily chart had a decisive close above the EMA ribbon. Currently EMA Ribbon price ranges from 40437 to 43210. We need to hold the top of ribbon as support in order to enter the rising trend again. We have already seen the following signals:
- RSI breakout
- Candle close above the ribbon
- OverSold Stochastic levels
Next signals to look for are:
- Price staying above the ribbon& holding it as support
- EMA Ribbon cross where short term EMA crosses the long term EMAs. it;s been already in play if we hold EMA ribbon as support for next week.
However on weekly chart, things are more hot. We are testing the bottom of ribbon as resistance and had a wick inside the ribbon. If we are able to hold the ribbon on daily, it will eventually help the price to go above the ribbon on weekly. Just above the EMA ribbon on weekly chart we have two strong resistance:
- 50 Week MA = 47971 (shown as white line)
- Most Volume Traded in 2021 around that price, which is represented by VPVR on chart.
This will be a crucial level of support to break on weekly time frame. and if we are able to get a weekly close above these levels and hold them as support, this can be the start of next bull run phase. But for that we have to see the price breaking these levels.
Will BTC be able to get weekly close above the ribbon in FEB or we will get a strong reject and test those 35k levels again? Please share your thoughts in comments.