We are flat, usually it happens so the market finds a strong point (where the average kama efficiency indicator reaches values around 0.80-0.85) and stops, at this time it can go sideways or noticeably bounce.
In most cases we enter a side phase which is now defined by the usual bands I use (see table below).
What I would like to see is:
- Some consolidation above the daily kama average, >$38,000
- A first break of the first resistance band at $41,000
- A trial of the 2nd band at $44,000
- A healthy retracement to around $41,000
- Final breakout above $44,000
This could be a recipe for a trend reversal on the daily chart.
$38,500 is not only the daily kama average but also the 2nd band of support on the hourly chart, I’d like to see bitcoin above these days on a possible build up before breaking above 41,000 $.
Fix in your head that as long as we stay below $44,000 (by the way it is also the monthly average of Kama) my opinion remains bearish.