Bitcoin Pops, Technical Picture Changes

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Bitcoin Pops, Technical Picture Changes

China? A Market Manipulator? No Way…

Bitcoin popped over the weekend after China’s President Xi Jinping gave his endorsement to cryptocurrency. The endorsement, no doubt, is meant to establish China as a cryptocurrency-powerhouse and propel a China-backed coin into the spotlight. Whatever the reason, Bitcoin and the pantheon of cryptocurrencies bot a major boost from the news. As part of China’s endorsement, the country is actively working to remove all articles, websites and news that portrays cryptocurrency in a bad light. This may not be an intentional manipulation on the part of China but let me remind you, China’s ban of cryptocurrency is what caused the 2020 bear market.

Bitcoin is up more than 25% in three days following the Xi Jinping endorsement. This is not so much of a big thing by itself, Bitcoin makes giant moves all the time, but it confirms support at key levels. Not only has support been confirmed at the $8,000 level, Bitcoin moved above the down-sloping resistance line and broken out of a previous consolidation. The move is supported by the indicators, MACD and stochastic are both bullish. MACD is on the rise and convergent with the new high, that is the MACD peak is setting a new high at the same time. Stochastic is interesting in that it is, overall, bullish and yet %K is still pointing lower. This suggests now would be an opportune to buy short-term, speculative positions, simple projections put BTC at $11,200 in a matter of day.

Other coins are likewise showing bullish activity. Ethereum, despite its long-running problem with upgrading (it can’t quite seem to do it), is also pointing to reversal. The coin is forming a nice double-bottom at a key support level and likely to begin drifting higher soon. The first targets for resistance are $200 and $220, once those are broken a move up to $240 and $280 is possible.

Litecoin, Bitcoin’s liter faster lesser-used cousin, is also indicating a reversal. Litecoin has confirmed divergence in the indicators by rising up from a new long-term low and moving above the short-term moving average. Litecoin may not be in a full reversal but the downtrend has ended. The indicators are bullish too, MACD is on the rise and stochastic is set to fire another buy, so $70 and $80 LTC likely to happen soon.

The long-term outlook for all the cryptocurrency market remains bullish. Not only is the usage and support of cryptocurrency growing, the Bitcoin halvening is about to cause a major rally. It’s still quite a few months until the halvening, could it be Xi Jinping and his buddies in China are counting on the rally? It seems awfully opportunistic for China to all of a sudden get bullish on crypto. This may just be my conspiracy-seeking mind at play, but what if it’s not? This could be the start of the next big rally, we may have just seen the bottom in BTC.

The DMI indicator

In this article I am going to show you and expain you a trend indicator, the DMI indicator and I will say you how a I use it. This indicator has a seperate window and look like this.

In the indicator settings I have a 20 Period and I have choose to show only DI plus and DI minus. We have signals when the green or the red moving average go above level 25. When green moving average is going above 25 we have a possible movement up. When the red moving average is going above the 25 level we have a possible movement down. The good for this indicator is that it doesn’t repaint. It is moving after the candle close and not when the candle is moving. Of course it is just an indicator but personally I find its signals more accurate in a trending market than other indicators. How can you use it? I will show some examples.

Look at this chart. It’s from GBPUSD currency pair. I drew a trendline as you can see in the chart and after bullish move from some minutes we have lower highs with buiyng climax at tops. The price is making one try to break the moving average with selling climax but it didn’t make it.Look the DMI behavor in this spot. It is below the 25 level. It protects you from an early entry. The next time that the price is trying to break the moving average the DMI indicator is above average and finally the price broke down the moving average and we have a strong bearish move after this. Can the indicator predict the price movement? Of course not. But the DMI counts the strength of the trend and it can filters some of your trades like the condition above.

You could also combine DMI with Ichimoku Kinko Hyo. Look at this chart. I drew two rectangles. One in DMI and another one in the main chart when the price is trying to break up the Kumo cloud. DMI shows us again that this price try has strength and it is possible break out of the Kumo. Finally the price broke the Kumo and moved up. When i use DMI to filter my trades I usually take longer expiry time like 10 or 15 minutes. DMI it’s a good tool for me.

Bitcoin Stocks

Before you all call me stupid and an Idiot, hear me out.

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I own a few bitcoin, eth and other “shit coins”.

Last yeah I bough MPX (a weed stock) that merged with Ianthus and was doing good, however now they are at 70 cents and my $5000 has turned into $700. I could care less about the $700 at this point as its only $700 so I figure why not just throw an absolute hail mary and see what penny stock I can gamble with it on. I also have a few grand in Aphria I am considering doing the same thing with but as its a few grand and not a few hundred bucks I don’t really want to be as risky with it. We shall see though. Weed just seems like dead money for years to come, super disappointed with how its gone so I really just want to get out and not look back.

The reason I say bitcoin is because I do believe in it and most mining companies are hovering around their lows with some pretty decent pops some days when bitcoin goes on a run.

I currently only know of a few, they are
Hut8 – I feel like this is who I’m going to go with unless someone can recommend another company or convince me otherwise.
Hive
DPW
Theres one other that starts with an R and ends with IOT but it seems like just a pump and dump.

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