The Bitcoin Hash Ribbons indicator just flashed a BUY signal on the daily chart ! Are we finally moving up or do we still have to wait ?

The Bitcoin Hash Ribbons indicator just flashed a BUY signal on the daily chart ! Are we finally moving up or do we still have to wait ?

By Djordi | DJCrypto | 12 Jul 2020


Bitcoin (BTC) has been moving more or less sideways for a couple of months now and volume just keeps on grinding down. A big move is on the horizon, but no one knows when this will happen. In the meantime Altcoins have been moving very nicely and are showing some much needed strength to show that they are still alive.

Hash Ribbons

The hash Ribbons indicator will show you miner capitulation and its recovery. When it capitulates you will see a grey circle. After that you will get the recovery phase with some green circles and at the end you will get a BUY signal with a blue circle. I will show you a chart right now on the Daily for Bitcoin :

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It took a little while (kind of unusual) but we finally flashed a BUY signal with the blue circle today !  I have been waiting for this for more than two weeks now but it finally happened. I am going to show you a graph which will tell how much you can earn if you trade on this signal :

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The signal does not flash often, but when it does you have a very good chance of high rewards ! You can see as well that a BUY signal will not instantaneously give you profits. It can have drawdowns first before you see the uptrend. This might well be the case now again, but at least the signal is a bullish sign ! You can see as well that the gains are pretty impressive, so this time we might finally see us breaking 10.5K soon.

One little note is that on the weekly chart, the signal did not flash yet but we are getting close. Today it is Sunday so it might flash already tomorrow, but otherwise I suspect that after next week we should see it also on the weekly chart for Bitcoin.

Here I will show you another chart of BTC with the indicator Accumulation/Distribution :

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This indicator will show you if something is being accumulated or being distributed. When price was all the way down at 3800$ we saw price moving upwards and the indicator as well. This shows strength in the trend. Now that BTC is falling down slowly since the 1st of June, we see the indicator still moving upwards. This means in general that the trend of price to the downside will not have enough strength to continue and that price should move upwards again.

The crypto fear and greed index is at 41 at the moment and is slightly in “Fear”. It is interesting to see that we are still in a “fear mode”, while price has been moving up from 3800$ to 10K. This is a good sign. If the herd is fearful, you will usually see the opposite happen and when people get too greedy, it usually moves down. 41 on this scale is not all to fearful and I would like to see it move towards the 30’s and 20’s. This however would mean a price decline first before this happens.

At the moment it is very difficult to say whether BTC is going to move upwards or downwards. Volume is still contracting and there are both bullish and bearish signals. When I look around on Twitter and Youtube I see a lot of people predicting things, but the reality is that no one knows when a big move is going to come. I am personally still thinking it will move upwards rather than downwards, but you do not trade on personal opinions. If it moves down I have sprinkled buy orders all around the 8K’s and the 7K levels. If it moves upwards I am going to be a happy man and if it moves sideways for a little while longer I will be happy as well, because it gives altcoins more time to move higher again ! 

Sources used :

https://medium.com/capriole/hash-ribbons-bitcoin-bottoms-60da13095836

https://www.investopedia.com/terms/a/accumulationdistribution.asp

 


Djordi
Djordi

I am Djordi van Kampen and I live in France. 2017 was the year I learned for the first time about cryptocurrencies and I am intrigued by what it can accomplish in this world, for the better of course !


DJCrypto
DJCrypto

Crypto enthusiast that would like to share his experience in the market in terms of investing and trading. Also travels a lot and likes photography and minerals.

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