This actually reveals that there is weakness in the current trend for bitcoin and also later in this video. I will be discussing the fact that bitcoin is just about to see a golden cross, which is historically a bullish sign for bitcoin and in anticipation of that bullish cross were seeing long positions open like crazy ill, be covering all of that and more in this video. So make sure youre watching all the way to the end, so that youre not missing out on any of these future videos and just before you jump into it, make sure to drop a like on the video down below and if youre new to the channel. You might as well subscribe with notifications turned on for more videos, just like this one, but anyway, with all of that. Out of the way lets get straight to what this video is about. So right here on the bitcoin euros dollar chart on the four hour time frame and yeah as ill be discussing over the last couple days here on. The channel bitcoin is still forming this divergence across the price and the rsi, as you can see quite clearly here on the four hour time frame. We are indeed in a short term downtrend in the price looking at the lower highs and the lower lows, but in the rsi on the four hour time frame after we saw that crash a few days ago, weve actually been in a short term uptrend for bitcoin.

In the rsi once again, so obviously that is the price and the rsi diverging and usually what a divergence like this actually means for bitcoin is essentially it means that theres weakness in the current trend for bitcoin and, of course, the current trend for bitcoin. On this four hour, time frame is a short term downtrend, so this divergence has shown weakness in this short term downtrend, which is exactly why we have been heading sideways pretty much over the last few days and of course, if youve been on the channel for around A week now i said right after we saw that crash just there, its very likely the bitcoin is going to spend a few days going sideways and once again were still going sideways. Theres, a lot of videos out there telling you that were going to see a very fast recovery or even more downside price action very soon, but once again, weve got to be realistic and really the most likely outcome immediately after that crash was simply this sideways price Action, as i explained early on, and also if we can see some more buying pressure here in the short term that could potentially complete this w pattern that we are forming in the bitcoin price on the four hour time frame right now. The line that we actually need to break if youre looking at the candle closes is coming in at pretty much exactly 47 000 us dollars. But if youre looking at the top of the candle wicks just here, then thats really coming in more like around 47 and a half thousand us dollars so pretty much in between 47 000 and 47 and a half thousand that little 500 price range is our next Major resistance to the upside, and if we can start breaking these previous highs just here, that will be a very bullish sign for bitcoin now, obviously, that doesnt have to happen.

But if we do see a break of those highs into a new higher high here on the shorter term, then once again, as i just explained, that would be bullish. Obviously, because a double bottom pattern, as the name suggests, means that the price could potentially be bottoming out and if we can break above this neckline just here at around 47 and a half thousand us dollars, then the technical price target for this break to the upside Is coming in at roughly around fifty and a half thousand us dollars, so that would be a gain of around seven percent to the upside and once again, ive mentioned a move like that over the last one to two days here on the channel, but obviously those Sort of price targets do not confirm unless we actually break above that 47 000 level. First, with confirmation that is important, while the bitcoin price is still below 47k and once again, its still quite likely that were going to be in this sideways consolidation. For quite some time and considering that these two lines, just here are the really important lines that we need to be paying attention to, because, of course, that 47k level is the resistance. But this line just here at 44 000. That is major support for the bitcoin price. So once again, as i explained early on straight after we saw that crash there, we would be entering into a sideways range. So right now the price is ranging between 44k and 47k.

So if were not seeing any break of these two levels, just there then perhaps longing at the support and shorting at the resistance can also be a strategy that you could use but obviously make sure youre doing your own research as well and then its pretty simple. Basically, as soon as the bitcoin price, either breaks the resistance just here or the support just here thats when the bitcoin price is gon na see its next major move and obviously the moment we start breaking the resistance here at around 47.5 k once again that next Major move will be to the upside towards around 50 000 give or take. But if we break the supports just here at around 44 000 with confirmation, then the next major move will be a trend. Continuation and, if thats the case, then this sideways price action. Just here could potentially be a bare flag because, usually when we have a steep drop off heading into sideways consolidation, and if we break the supports for that sideways consolidation once again, thats exactly what a bear flag is and if thats the case. If we break the support at around 44k and if this bear flag does end up playing out, then the technical price target would be coming in at around 38.5 k, so from 44 000 down to 38.5 000. That would be a drop of around 12. To the downside, but we also have to consider other areas of support as well, such as the 21 week, simple moving average acting as very strong support for the bitcoin price, because we already saw one major bounce along that level.

With that major flash crash to the downside, and also in previous times throughout bitcoins entire price history and right now, this 21 week moving average is coming in at just above 42k, more specifically around 42.3 k. But of course it is changing over time. So, even if the price breaks below 44 000 euros dollars, even though that 38 and a half thousand dollar price target, is the technical price target for a bear flag, we still cannot forget about these other areas of support for the bitcoin price as well. Just zooming out to the daily time frame and bringing out the fibonacci retracement tool from this low at around 29 000 up to that high at around 52 to 53 000. As you can see here that gives us the golden pocket. The 61.8 fibonacci level, which is the most important fibonacci level coming in at just above 38, 000 close to 38 and a half thousand us dollars, which is really interesting, because obviously that is that technical price target out of that potential bear flag. That i was just discussing so now theres a few different indicators and patterns that actually point towards around 38 and a half thousand us dollars. If we see a strong break of the immediate support that we have right now and of course, on the daily time frame, we still have that major downtrend in the rsi, so thats still not great for bitcoin talking about perhaps over the next few weeks or so.

What we would really need to see is this rsi starting to bottom out here on the daily time frame and if we could start heading back to the upside here, then that will be a strong signal that the bitcoin price is going to recover soon as well. But, of course, were not seeing that just yet in the daily time frame for the rsi, but on a more bullish note right here we have the 50 day simple moving average and the 200 day, simple moving average. So, by the way, the green line is the 50 day and the red line is the 200 day. And when you have these two specific moving averages laid out on the charts. They are the moving averages that determine death crosses and golden crosses. So obviously, during the middle of june we had a death cross for bitcoin just here, and right now were just about to see another golden cross for bitcoin, probably within the next couple days and technically speaking, this is meant to be a bullish signal, because a golden Cross basically marks an uptrend for bitcoin, because when you break it down, what a golden cross actually is is having the 50 day moving average crossing above the 200 day, moving average, so youre having a short term moving average crossing above a longer term, moving average, which Simply means in the shorter term, once again in the last 50 days, the price is at a higher level than the average price over the last 200 days.

So, in the short term, we are looking more bullish compared to the average longer term price action, but keep in mind that moving averages are obviously lagging indicators. So, as i was just explaining the 50 day, moving average takes the average price of bitcoin over the last 50 days worth of price action and, of course, the 200 day moving average, as you can already guess, takes the last 200 days worth of price action and Creates an average out of all of that price action. So how much are these death crosses and golden crosses actually lagging behind the bitcoin price? And to answer that question, you simply have to look at the moving average with the shortest length, which is the 50 day. Moving average, so, technically speaking, these crosses are delayed by around 50 days when you compare where the cross is going to happen and where the bullish price action actually started. So, for example, where we are right now, when you measure 50 days ago, that was all the way back here towards the end of july, when the bitcoin price was at around 34 000 us dollars approximately, and that was when the bullish price action was really starting To kick off once again, not right now and looking at this previous death cross just here on the charts during around the middle of june, once again, if youre, actually measuring from that death cross going back 50 days before the death cross.

That was right back here when the bearish price action was just about to begin once again. So basically, these crosses only really tell us what has happened over the last 50 days. So when you simplify these crosses completely, the bullish crosses mean that the price action over the last 50 days has been more bullish than normal, and the death crosses actually mean that over the previous 50 days before the death cross, the bitcoin price has been more bearish Than it normally is now, if youre looking at the very early days of bitcoin, these moving averages, these actual crosses the bullish crosses and bearish crosses, were actually very accurate, buy signals and sell signals. So, of course, if youre buying on a golden cross, that normally means that youre going to be making some amazing gains and if youre selling on a death cross. That normally means that youre actually getting out before a lot of bearish price action. But in more recent years, looking over the last couple years or so, weve actually seen a lot of false signals in these crosses just here. For example, zooming in on this cross. Just here during october 2019, we had a death cross which is meant to be bears for the bitcoin price. But on that day that we were seeing the death cross, we were actually seeing one of the biggest daily gains in bitcoins history. So, for example, in this one day just here when we were seeing a death cross once again, bitcoin actually pumped around 40 to the upside in a single day and now looking at the following golden cross during around february 2020, of course, that golden cross just there Actually came just before a lot of bearish price action, so once again, these golden crosses only tell us that we have been more bullish than normal in the previous 50 days before the cross.

And, of course, the death crosses only tell us that weve been more bearish than normal in the previous 50 days before the death cross, but simply because were seeing this golden cross and its meant to be bullish that still can push up the bitcoin price as a Self fulfilling prophecy, and what that actually means is basically, if enough people think its going to be really bullish and start buying. Bitcoin, then thats going to push up the price of bitcoin in speculation of the bullish golden cross and thats. What were seeing right now, at least in the short term, this is the bitcoin long positions on the bitfinex exchange on the four hour charts and, as you can see here over the last three to four days after that crash after that long squeeze that we saw A few days ago, once again, weve actually seen the long positions increase quite rapidly over the last three to four days since this low. Just here on the 8th of september. These long positions have actually increased by over 2 200 bitcoin, which, at the current price of bitcoin, equates to over 100 million us dollars worth of bitcoin entering into long positions. Over the last four days and of course, when youre entering into a long position, you are providing a buying pressure on the bitcoin price. So this is technically speaking, a bullish sign in the immediate short term providing buying pressure on the bitcoin price. But you also have to consider that eventually, these long positions will have to close again and when they do close.

Thats gon na obviously provide a selling pressure on the bitcoin price. Now, when youre zooming out here on the daily time frame, looking at the bigger picture, as you can see, the gain in the long positions actually isnt that crazy on the much bigger picture when youre, actually, comparing that to the huge reduction in these long positions over The last one to two months so use this information, as you would like to set up your own bitcoin strategy to hopefully make some money in these bitcoin markets. As far as my bitcoin strategy goes right now, im simply just a dollar cost averaging, as always im in no major trade. I will let you guys know if i am setting up a new trade, but right now im actually just waiting on the markets to really choose another direction here, because, obviously, over the last few days, weve simply just been consolidating sideways. And yes, you can make some small trades within that sideways consolidation, but really, if youre, going after the bigger money, youre looking for these bigger trends in the bitcoin market and those sort of trends, those bigger moves in the bitcoin price will be determined once again. If we either break the resistance or the support, as i just explained earlier by the way, if you enjoyed the video or got something valuable out of this video, be sure to leave a like down below and if youre new to the channel make sure to subscribe.

With notifications turned on so that youre not missing out on any of these future videos, i post these update videos every day here on the channel, and so it only takes a couple seconds out of your day to actually go down and click like and subscribe. Once again, and as always, i really do appreciate all of your support in the channel at the moment, i cant thank you guys enough, but anyway, thats really ending to say for this video.

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