Dear subscribers, this blog has not published much about technical analysis for a long time. Perhaps until now you have thought that this community was dead. But not. We are still dormant. We just took a long vacation while the market finished its correction.
For the last point then, we must add that we are at a very important legal point, and it is time for us to resume our activities to continue informing you.
It's Time To Resume Shopping
At the time of reading this article, Bitcoin had already made more than 75% of its correction after completing its monthly ABCD Elliot cycle. We are at a decision point where the market can remain supported by the EMA100 and within a descending triangle, or simply break that support below $16290.60 and go to the approximate 80% correction.
The truth is that we already know what the cycles are like and we can affirm that first some negative news will make the market collapse again. And we say again, because the last movements were preceded by the blow given within the FTX exchange.
To these negative news can be added the apocalyptic events that many seem to have no interest in knowing. High inflation, currency devaluation in several countries, internal civil wars, government despotism and other facts that make investors afraid to put their money at stake.
The truth of the matter is that every day the dollar becomes more expensive and uncertainty reigns in many territories. However, we must take these negative events as new opportunities. In short, it is time to buy low and then sell high.
Positive Points To Evaluate
If we look at the monthly trading period, we see that Bitcoin continues to hold above the monthly EMA100 and many moving averages are already looking for breakout signals to alert what is coming.
In a past analysis, we had said that after the 2018 correction we had entered an ABCDE wave cycle, simply indicating a period of redistribution of capital between bears and bulls. That leads us to intuit that soon we will see the beginning of the true cycle 12345 and that many expect.
For now, the safe point of purchase is well above 21149.99. But since we are wolves, we will buy the bottom of the well little by little, anticipating the rise of the turbulent water.
Things to celebrate for now: MACD confers the next parabola before the crossing of the means; ADX bottoming out and signaling moment of voltage change and volume refinement; RSI with 43 points, indicating oversold and with incidence with the stochastic RSI towards a next trend change; and parallel lines between the Fisher transform and the Williams moment indicator.
The recommendation then is: buy the fund as if you were going to lose little and wait for the next few months of good wine.
