bitcoin is the bottom? not yet, but almost
BTCUSD is drawing and just now almost crossed 7K $. Is the bottom? maybe not. Why? because the volume are growing but not enough to reverse the bear trend as when it happened in September 2017 for example.
Also checking the RSI on the daily chart, rarely it reached the threshold of the oversold level of 30, and last time it was on the 6th of February when it bounced from the bottom of 6K to a new relative high of 11.7K $. But we are still not there.
The Stoch RSI as well is again at the bottom level, but only few times the Stoch RSI was the signal of a bearish trend inversion. And it happened only when also the RSI was in oversold area or nearby (in the daily chart).
MACD? Can it predict a trend changing? The MACD probably shows a trend inversion only when it's already happened. but still can be used to confirm that a trend has inverted though. Currently, since the last 10 days, it is in a grey area. below the zero, and with the 2 lines keep crossing ehach other. Can it shows an inversion soon? Maybe, at least is below the zero.
Ok let's analyze the supprt levels we could face:
4500 is the very bottom that worked as support and resistance during the last year multiple times. Is it too low? maybe. Let's move higher: 5800/6000 was the level that worked between October and December as both, Support and resistence. Furthermore it was also the last (real) bouncing level on the 6th of February.
Let's have a look at the dynamic levels. One bottom trend line is already broken, but in case of inversion, we can also expect that the price will go quickly up to the level of the trend (chance of long trade in case).
In conlcusion, the MACD is the only indicator that probably is not strongly suggestion a trend inversion. but we are confident on the RSI and Stoch RSI combination and the price can rush to 6K before see a definite inversion to a bullish trend. In short, a th the current level of 7K we suggest a short position to be closed at 6K and immediately open a long position with a stop loss to prevent a drastic panic sell off.
Last but not the least, we don't believe in the wall in the book order due to the hidden order, the bot orders and the fake wall that disappear once we are close to the price. but we see in Bitfinex that the order book has a total of 7000 BTC in buy from the price 7K to 6K and it's something we don't see that often.
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