It's been a while since I did one of these!
If you're new to the blog, I'll be looking at BTC's price movements within the day, what it did today and where it's likely to move to tomorrow.
I don't want to beat about the bush too much today, so let's get started with the analysis!
BTC always has lackluster weekends, and this one was no different. Yesterday's 2% fall saw us retesting 8.9k again. Yours truly was in a short, but foolishly closed at 9.1k. Anyway, that's a story for another day.
Here's a mobile screenshot of the BTC chart from Binance. I apologize for the lack of a proper desktop screenshot, as I've been away from my home for a while, and foolishly forgot to take my laptop.
As we can see from the above chart, BTC us above its 100SMA. While that's generally a good thing, what we can notice from the image is that the MA isn't following the price as it goes up.
Pro tip: Moving averages ought to follow price in it's movement. If the moving average is going up, but price is going down, that's a divergence, and price always corrects to the moving averages.
This could mean that price may correct in the coming days to fall flat on its face, or the moving average may move with price up.
Either way, today was very lackluster. I actually opened a short at 9100 but closed it at 9075 because price wasn't moving according to plan.
So what can we expect from BTC tomorrow? Given tomorrow is a holiday, as well as the real start to the weekend, it's likely price may pump because of the holiday. Or price may dump as people withdraw their BTC to buy gifts for each other. I can't say for sure, but I'll refrain from trading tomorrow.
Now on to the one you really came for.
BAT and its MA are NEGATIVELY correlated. What this means is that the MA is moving up, but price isn't following. This means that the price is "wrong", and would be correcting to meet the MA very soon. Equally, RSI has crossed 50 and established it as a support. It is very likely we see a big pump from this one soon.
My targets would be the 200EMA, although I don't have it on my chart. I would be wary of buying before price corrects to match the MA though, because we won't be sure the rally us happening, and it's always best to wait.
Thanks for reading guys.