Technical Analysis - Constellation
DAG/BTC - 01/31/2020
As shown above, we will be updating the Technical Analysis on DAG/BTC from the 6th of January.
As we can see, DAG is showing a very lackluster price action at the local levels. The market structure is set up to be a descending triangle and has already multiple confirmations that it is one. Just as we know with the history of Bitcoin, descending triangles have a higher chance of breaking downwards.
Given the statement above, we take a look at the bearish narrative and try to confirm or deny it.
First of all, we take a look at the volume. The volume on DAG/BTC is very, very low, and almost not showing at all were to deny the bearish statement. We would need to be seeing a high or at least increasing buy-volume.
Furthermore, we take a look at the MKAST Algorithm, which right now is showing a Sell-Signal, which is speaking for a breakdown, yet due to deficient price action, the algorithm has been choppy lately and could change at a breakout as well.
Finally, we take a look at the TJ-Index. This is one and pretty much the only one showing some bullishness of all indicators. Here, in this case, we are seeing a bullish divergence, where the chart is going sideways, yet the TJ-Index is making higher lows, indicating that multiple indicators are slowly turning more bullish at the local levels.
An experienced trader would wait for a breakout and look for trades on a re-test around the levels of the yellow box above.
This Technical Analysis is made by Kong Trading. The provided Analysis should not be considered financial advice!