The trend is your friend, all the way”.
It’s a principle of technical analysis that usually works very well. Even better than we think. For this reason, let’s consider how a strategy could be set up for the next few months and even the next few years. Let’s start by marking a way to measure the trend in the medium term with the 3-day chart:
It’s not going to be enough to see $42,000. We need to see strength in the trend, with volume and decision candles (little shadow and a lot of body). Until then, the bears are controlling the price. And you can average, trying to find the minimum. But always remembering that the trend in 3 days is bearish until proven otherwise.
Let’s go with the on-chain analysis.
I was very curious to see the Hash Ribbon, a metric that I have discussed in previous articles. As we can see, we have had no miner capitulation, which is quite incongruent with respect to the drop a year ago. Also, the lines show us that miners are still hungry for new bitcoin. So they are being supportive of the price.
“Fall more, buy more.”
The whales are using their stablecoins to buy or to withdraw fiat. By crossing the two data we can intuit that they are buying BTC.