Until the Trend Changes

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:

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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.

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“Fall more, buy more.”

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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.