This week candle was a spinning top doji, which is a candle that indicates indecision.
What’s quite remarkable though is that the past three weekly closes have closed within $400 of each other! Talk about boring and flat price action!
The good news is we closed well above our weekly 200EMA ($25.6K).
Regarding the weekly chart below:
1) The bullish Bump and Run pattern is still clearly in tact. This is the sloping red line of resistance that was breached at the beginning of the year with the back test in March. (Far right black arrow)
2) We are also above the horizontal Support/Resistance line, which coincides with the 50/100/200 Weekly MA Ribbon. This line is divided into TWO colors. Anything over the green color is good, a fall under the line turns it back to Red (which would be bad).
3) RSI (top ⭕️), is still under 50. Bulls want to see this get back over 50. Anything under is relatively weak and results in the price action we’ve seen this past month.
4) MACD/Histogram (middle ⭕️), still has a bearish slope and cross. BUT! The Histogram failed to make a lower low. In fact, it was equal to the past histogram bar. This sometimes will be a subtle hint that recent selling pressure is abating.
5) Stochastic (Bottom ⭕️), is now quite oversold with a reading under 20. In a Bullish market, this is also a good indicator of exhaustion of recent selling pressure. While they can stay “embedded”, the good news is that this oversold reading is happening at a time of high bearish sentiment as price rests within its weekly MA ribbon. In other words, people tend to be most bearish near the bottom.
Bottom line:
Like stocks, with their late summer swoon, $BTC is meandering above support as retail is becoming increasingly bearish and looking for another drop. And while that is still possible, the probabilities are starting to align with the Bulls from a technical and sentiment standpoint. In fact we haven’t breached our prior pivot low, and that is quite positive. The thing that will probably kick start our price action out of this range will likely be the equity markets. And as many here already know, I am VERY BULLISH EQUITIES into year end.
The last thing I’ll leave you with is this:
Exercise some patience! Those who have bought and held since the lows have already been rewarded, and those who continue to exercise patience will only be rewarded further once we move into the 4th quarter of this year.
That is all for now. ♠️
$BTC WEEKLY
https://twitter.com/JTheretohelp1/status/1701032867935953285
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