Short Term Update: Approaching Resistance Area
The situation has not changed much since the last update, BTCUSD retested the support zone a second time and reacted to the upside.
Now we are entering the resistance zone and the kama efficiency ratio is still below 0.30, flat market.
I would say that I’ll expect some form of resistance between 40 and 44k from sellers in general.
A decisive break above $44k would confirm the continuation of the ongoing bullish trend on the monthly chart.
A particular attention deserves the situation on the weekly chart, where instead of going down BTCUSD remained flat for 4 weeks, I would interpret this behavior as a signal of strength.
Honestly, looking at the weekly chart, I already see 53-54 thousand dollars as a target for the coming weeks.
OFFTOPIC: A nice example of how to spot a top with Kama Efficiency Ratio
I wanted to include this example because I think it is very good to understand the potential of the Kama average togheter with deviation bands and its efficiency rate (ER).
Last 28 January after a very volatile day and given the reading of over 0.80 of the kama ER I understood that something was wrong and that the top could have been done. This was confirmed in the following days.
A violent downward movement immediately brings the average kama in a stalemate position that allows us to have reliable deviation bands support/resistance zone.
I expected a correction down to 60 usd, which then happened. It is also not correct to say that the price collapsed from $480 to $60, it just moved within a very wide flat zone.
Now the GME price might even go back up to the Kama average.
OhNoCrypto
via https://www.ohnocrypto.com
CryptoAdvisor, @KhareemSudlow
