BTC there is more room downwards

In my trading approach, I combine the Stochastic Momentum Index (SMI) and the Kaufman Adaptive Moving Average (KAMA) for a more comprehensive view of market dynamics. The SMI, particularly effective on a 12-hour timeframe, helps pinpoint momentum shifts, while the KAMA excels at identifying broader trend directions.

Currently, the KAMA has been indicating a bearish trend for a while, but the SMI sits at a mid-level, suggesting the market still has room to move lower. This alignment offers valuable insight into potential downside opportunities.

I also leverage the Commodity Channel Index (CCI) alongside the SMI to refine the detection of local highs and lows. This combination is especially powerful when analyzed on shorter timeframes, providing more precise entry and exit points. While the KAMA sometimes lags or gives false signals, its reliability in identifying the overarching trend makes it a critical part of my setup.

With the SMI yet to hit extreme levels, the market seems to have additional room for downward movement—a scenario worth monitoring for the next potential move.