Daily Analysis 10/8: Will the virtual currency heat up due to Trump's rising approval rating, but experience a sudden drop? How far is it likely to drop?
[Technical Analysis (Overall Rating: 2.1/5)]
<Key Points>
• Both short and medium-term are rapidly rising towards a downturn. The momentum is still strong, but from a chart pattern perspective, it may stabilize around $62,000 in the near future.
• Currently in a strong downtrend, but there is some room for a reversal.
• The market is somewhat cooling down with low volume, making it a favorable buying opportunity. If the volume moving average line is likely to have a golden cross in the future, there seems to be room for an uptrend.
Market sentiment rating: 1.5/5
・Chart patterns
Short-term perspectiveConfirmation of both 5 waves of advancement and 3 waves of correction, leading to the possibility of rising above the support line. However,After forming a triangle consolidation pattern following the 3 waves of correction, it failed to break above and led to extension.Resuming the downtrend.
Medium-term perspectiveUnable to break through the resistance line at 64,000 dollars,A double top is forming. Since it has also passed the neckline, it is highly reliable, and it is advisable to consider a decline of up to $62,000.
・Moving averages
Short-term perspectiveFailed to break out of the triangle consolidation after the corrective wave 3, resulting in a death cross on the 5/21/50-day moving average. Although temporarily moving sideways, the downward momentum continues.
Medium-term perspective: Candlesticks touched the 200-day moving average line. A death cross occurred with the 5/75-day moving averages most recently.
Rapidly rising in the short to medium term, leading to a decline. The momentum is still strong, however.From a chart pattern perspective, will it settle around $62,000 with the drop?
☆Trend (1.5/5)
- DMI
When the neckline of the double top is breached again, PDI drops sharply/ADX rises rapidly. A divergence between PDI/MDI is observed. However, the cross between MDI/ADX suggests a possibility of reversal.
Currently still in a strong downtrend, but there is some potential for a reversal.
☆Volume/Overbought condition (3.5/5)
・RSI×MACD
RSI fell from 60 to around 45 when it formed a double top. There is some cooling off, but it is within an acceptable range. MACD was consolidating in the high range, but plummeted due to a death cross. Currently, it is somewhat stagnant.
・Volume Moving Average Line
The width is expanding near a death cross on the short-term / medium-term moving averages. Currently, the volume is relatively low and stagnant.
→With the market slightly cooling off and volume being low, it is a great buying opportunity.If the volume moving average line is likely to have a golden cross in the future, there seems to be room for an upward trend.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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