This indicator made me take a second look today 👀
A November 3 report from CoinDesk said the GMMA on $BTC ’s daily chart flashed a warning sign
The short-term moving average group has fallen below the long-term group
Price has also dropped below both groups of moving averages
The long-term red lines are still converging and starting to turn downward
According to Guppy, this is a warning that momentum is turning bearish
But this indicator has been wrong before
After a similar signal appeared in May this year, the price fell below 60,000 in early June
The January signal also saw it slide from around 90,000 to 62,000
But in August and September last year, the signal appeared and the price quickly climbed back up
So the warning light is a heads-up, not a verdict
There are other things to consider right now
ETFs saw net outflows of 643 million in a single day on October 30, the biggest daily outflow since June
The options market is still buying downside protection
The range given in KuCoin’s daily report is also pretty practical
On the downside, watch whether 76,000 to 76,600 can hold
On the upside, reclaiming 79,500 to 80,500 would mean things are starting to recover
The Fear Index has already dropped to 26
My own take is simple
When a bearish indicator, outflows, and rock-bottom sentiment all come together
Chasing shorts and trying to buy the dip can both get you hurt
Better to first see how the price reacts around 76,000
If it holds, then talk about a rebound; if it breaks, then look to the next level
Are you staying on the sidelines for now, or have you already started buying in gradually?
$BTC $ETH
#市场观察 #TechnicalAnalysis
Not investment advice. DYOR. Trading involves risk.
A November 3 report from CoinDesk said the GMMA on $BTC ’s daily chart flashed a warning sign
The short-term moving average group has fallen below the long-term group
Price has also dropped below both groups of moving averages
The long-term red lines are still converging and starting to turn downward
According to Guppy, this is a warning that momentum is turning bearish
But this indicator has been wrong before
After a similar signal appeared in May this year, the price fell below 60,000 in early June
The January signal also saw it slide from around 90,000 to 62,000
But in August and September last year, the signal appeared and the price quickly climbed back up
So the warning light is a heads-up, not a verdict
There are other things to consider right now
ETFs saw net outflows of 643 million in a single day on October 30, the biggest daily outflow since June
The options market is still buying downside protection
The range given in KuCoin’s daily report is also pretty practical
On the downside, watch whether 76,000 to 76,600 can hold
On the upside, reclaiming 79,500 to 80,500 would mean things are starting to recover
The Fear Index has already dropped to 26
My own take is simple
When a bearish indicator, outflows, and rock-bottom sentiment all come together
Chasing shorts and trying to buy the dip can both get you hurt
Better to first see how the price reacts around 76,000
If it holds, then talk about a rebound; if it breaks, then look to the next level
Are you staying on the sidelines for now, or have you already started buying in gradually?
$BTC $ETH
#市场观察 #TechnicalAnalysis
Not investment advice. DYOR. Trading involves risk.