Economics and Trade
MACD vs RSI, who is goin to win today?
RSI stands against the MACD in today's chart but both are titans in TA. We will have to wait and see who is going to win. My bets are on MACD,..
Despite all the positive indications given by Kaalama DeepDive analysis, the market is still giving me creeps with its bizarre price action. It is time for BTC to start it's last part of the bull run but it keeps going down instead.
Therefore, I took another peek into technical analysis. Given the current market conditions short term TA seems to be not very effective as the market is apparently under manipulation but medium term and long term charts cannot lie.
Let's see what we can find in the weekly bitcoin chart.
20 weeks MA is turned down but the price seems to be resting a bit above the lower Bollinger Band. This is a usual pattern that we see before a push towards the mean of the Bollinger Band but there is no guarantee. One strong news is good enough to push the price further down. Yet, if one believes in normal distribution in statistical analysis, what we see is a safe zone for betting.
No one uses one indicator alone but combines two or more as they see fit. But before that if we check the volume trend, what we can see is a clear long term up trend, most certainly due to the recent institutional interests. However, during the last 3 weeks, big boys seem to be dominant and maybe awaiting to kick in with an explosion to either direction. The volume trend and low volume during the recent weeks again indicate that we could expect an upwards momentum soon.
Then, if we take MACD into the picture, which is a very powerful tool, a clear trend reversal is evident. A classic divergence and is great news. The price is already in an uptrend despite the fact that it's practically invisible in day to day analysis or even in the weekly chart.
RSI indicator is another very powerful tool that we use on a daily basis. It appears to be going to see the lights of 30 but even if that's the save it will have to come back if the history is to be repeated this time as well. So if we consider the RSI indicator alone, the next few weeks cannot be good. It stands against the MACD but both are titans in TA. We will have to wait and see who is going to win. My bets are on MACD.
Finally, despite what TA, MACD or RSI has to say, this game is played by smart money now and what they want to happen is what is going to happen. We can just keep arguing but nothing is going to change anything. Therefore, let's keep track of big players.
Not financial Advice, but analysis only.
Dr. Buddika Adikari
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