Correction after a divergence
Hello hello Wondering person!
Today, I am not going to do any solid TA considering that I am experiencing massive hangover from yesterday event....Don't drink and drive, Never trade or TA with an hangover.
However, before going to the event I did manage to see massive divergence in the RSI in all three timelines: hourly, 4 hourly and daily, so I did some quick rebalance of portfolio and downscaled my eth and btc percentage.
I was glad I did that quick rebalance though, but now comes the question: Should rebalance again to buy back on the current dip?
Even though I am tempted to buy on the dip now, I think I will wait a little to see if the price will hit or move closer to the 200 MA on daily chart (currently @8050).
Reason why I wait:
full effect on financial from corona?
To elaborate a little more about what I mean about that statement.
Shops,restaurants and factories in China, as well as Hong Kong, have seen a noticeable decline in income during the Corona period in January and Mid-February. The decline in income might not yet have manifested its full effect, because these businesses are using their buffer money or savings to counter the effects.
However, if the trend continuous over to March; I believe we will see more red numbers in financial markets. When this happens, investors might look even more into BTC for safer harbour of their portfolios; which could spark a boost in btc price regardless of TA indicators (wildcard).
Today, I am not going to do any solid TA considering that I am experiencing massive hangover from yesterday event....Don't drink and drive, Never trade or TA with an hangover.
However, before going to the event I did manage to see massive divergence in the RSI in all three timelines: hourly, 4 hourly and daily, so I did some quick rebalance of portfolio and downscaled my eth and btc percentage.
I was glad I did that quick rebalance though, but now comes the question: Should rebalance again to buy back on the current dip?
Even though I am tempted to buy on the dip now, I think I will wait a little to see if the price will hit or move closer to the 200 MA on daily chart (currently @8050).
Reason why I wait:
- The divergence was very prominent, and the market had a good run without any significant correction. So this could be a strong correction.
- The indicators are not yet showing good sign of slowing down in the direction of the correction.
- There are a couple of good and strong support lines before we hit the 200 MA daily, so need to see (strong support lines: @8909, @8560, @8400 and @8242)
- The full effect on the financials from the Corona Virus has probably not yet manifested, which could mean that more money will flow into other assets such as btc, when it does.
full effect on financial from corona?
To elaborate a little more about what I mean about that statement.
Shops,restaurants and factories in China, as well as Hong Kong, have seen a noticeable decline in income during the Corona period in January and Mid-February. The decline in income might not yet have manifested its full effect, because these businesses are using their buffer money or savings to counter the effects.
However, if the trend continuous over to March; I believe we will see more red numbers in financial markets. When this happens, investors might look even more into BTC for safer harbour of their portfolios; which could spark a boost in btc price regardless of TA indicators (wildcard).
Happy hunting and stay safe!
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