Yesterday we made a submerged crossover. So, let’s go down some more…
The last six submerged crossovers have anticipated a dive. If this one is confirmed, and probably will be by the circumstances, it will be the SEVENTH submerged crossover bear flag confirmed in a row!! The last five emerged crossovers anticipated a climb as well… so, when this bear flag is confirmed… there will be TWELVE confirmations in a row that our method works!!!!!!!!!! Need to say more?! 😉
Let’s take a look at each indicator of our setup…
RSI – We haven’t reached oversold levels yet, we’ll probably be there in a few days… maybe the line (level 30) is only touched, but a small breakout is more likely. Also, don’t expect that oversold levels will last long.
Stochastic RSI – We’re already at oversold levels and will likely to oscillate there for some time.
Stochastic – We’re already at oversold levels… it looks like the down margin isn’t so much.
MACD – We crossed down and it’s likely that the blue line will stay underneath for some time… an inverse crossing is what we expect for a reversal.
Note how the distance between the height and depth of the waves got smaller… this indicates a decrease in power on the sellers side.
Conclusion: If you are thinking about buying bitcoin, you should wait a few days and when we’re at oversold levels in RSI (or at level 30), you should start to choose your position. It’s always good to combine indicators… in this case, look also at MACD to know when the blue line crossed the red line to take the way up. Stay tuned for future updates!