Bitcoin rebound still in play, Renko analysis
The rebound for Bitcoin is still in play. Last night, we had a pretty big move to the south around 2000 CST. That move was because South Korea has started to clamp down on cryptocurrency, especially with targeting anonymous accounts and shady exchanges. That kind of news will always move this market.
We really have not moved much here over the last few days. We continue to find support at the current value area (15000-13250). For me, the candlestick chart over these last few days is just a nightmare of a chart. It’s noisy, choppy and just filled with consolidated moves and fake-outs. When I see that kind of action, I need to switch over to good ole’ Renko.
Now, this kind of chart just makes me feel a lot more relaxed. Let’s review what Renko charts are:
- Renko bricks only form when price has moved. For this chart, price has to move $250 up for a green brick to form and $250 down for a red brick to form.
- Renko does not account for time. It is only price and price action.
- Renko is cleaner and filters out the noise.
Now to the analysis for my bounce and rebound bias.
- Price has formed a new green brick after this recent down move and price is currently showing the formation of another possible green brick. We are also right up against our first arc which will be acting as resistance.
- Oscillators are a somewhat tricky beast when it comes to Renko, often we only want to trade the extremes of the oscillator(s). What we have here is an extreme on our chart and it is a strong indicator of price bouncing from this oversold condition.
- A move back up to 15000 from this area is where I would like to see price return. The higher we return beyond the 14000 area, the more participation we should have to push Bitcoin up and over the 15000 level.
- What I have not put on this chart is the moon cycle. We have a full moon on the 31st and full moons mean that we are at or near a market bottom. It is very probable that this full moon will show us the momentum we need to continue higher.