As you well know, one of the most frequently used strategies by our team of analysts to try to predict long-term crypto price movements is the use of HA candles on weekly timeframes. It is no secret: After a long series of red candles, the arrival of a green candle is a signal that cannot be ignored. The same goes for the reverse. Nothing different for retracements ...
In summary, we always give an eye to the HA setting of a weekly chart before taking positions.
Needless to say, on Bitcoin over the past few months this approach would not have brought gains into the cryptohubble coffers: not even losses but it certainly would not have brought sound sleep.
What can we infer from this market condition? Does it mean that we will continue to go down? Does it make sense to continue with this strategy?
We are not financial advisors and this answer involves knowing your specific perceptions of risk. Beyond that, we will continue as, although it is objectively a slow and less speculative way of working, it is still statistically one of the best strategies to participate in long-term movements on cryptos.
What does HA communicate now?
Simply a lot of INDECISION. Moments like the one between April and October, however, are very interesting zones. Needless to turn around, this was a distribution zone. As repeatedly stated in past TradingView articles, the $20K number was nothing more than a liquidity well pet the shortists. Price, in most cases, was touching that value from the bottom to the top.
Should we expect further declines?
make no mistake because as highlighted earlier, it is indecision that reigns supreme in today's financial markets, not necessarily panic (in the short run).
