Overview: A Confluence of Indicators Portends A Further Downtrend in July 2018
Our bitcoin technical analysis suggests that we should spike up over the next couple of days before beginning the downtrend in earnest. The team at Degenerate Chain see us slowly trending up for about a day or so (into the Friday July 13, 2018 weekend). We will limit close long positions at $6296 and $6321 in case we don’t hit exactly $6,350.
However once closed, we will start shorting XBT/USD.
NOTE: Forecast/Predictions essential for outline/plan. However, the most important thing is the price action. Price action and volume will always dictate our plays.
If we are wrong, then adapt and react.
A Closer Look At The XBT/USD Chart
The green arrow on candles with the corresponding green dotted line on the 3/10 Oscillator show we have significantly higher low but the RSI bottom has not really changed. This means we have a hidden bullish momentum. We saw this around the middle of May 2018 which resulted in a small bump up in price only to be followed by a significant drop in price heading into June 2018.
Here is a better picture showing the confluence of XBT/USD candles, RSI and the 3/10 Oscillator suggesting that we will have a further decline in price in July 2018
Looking at the RSI levels in July 2018, we see a striking comparison to the RSI in May 2018.
Below is the daily XBT/USD RSI. The end of this move last time was complete once RSI matched prior peak. This would correspond to the July 12th, 2018 hight of ~$6,350.
3/10 Oscillator (Modified MACD) Indicator Further Explained
What we have here is…