BTC/USD Update - 5/3/19 - Resistance Reached!
First and foremost, I've slightly adjusted my indicator setup:
- I have changed the RSI Strategy indicator to the TrendMaster indicator by IchimokuScholar and Crypto_C00kie. Check them out on Twitter.
- I have adjusted my momentum indicator to include a MACD for further trend confirmation.
The trade setup is essentially the same except the TrendMaster indicator prints out signal candles which I can use as a potential trade entry.
The common Head & Shoulders pattern that bears claim has been forming has been invalidated with another strong leg up. Price action pierced into the $5800 - $6200 target range only momentarily. I have two scenarios here to look for:
- We establish $5650 - $5700 as a support before moving into the yellow zone.
- We shoot straight back into the yellow zone and go into a consolidation period.
A bullish MACD signal with a flip to bullish momentum on top of a recent signal candle shows me that there is still some strength here and scenario #2 seems more favorable.
It would be unhealthy for BTC to continue any more strong legs up further without taking a breather. I do not expect us to tackle the Wall that is $6000 just yet. We should see sideways action for several days, allowing BTC Dominance to fall under %50 and subsequently encouraging cash flow into Altcoins. After a proper breather, we can begin the Herculean Task of breaking $6000. It is also foolish for new bulls to expect us to continue a straight shot upwards. A strong pull-back will happen; that's just the nature of any market.