Technical Analysis - Digibyte
DGB/BTC
 - 12/19/2019

As shown in the chart above, we will be analyzing the technical status of Digibyte against Bitcoin. 

 

We will be asking a series of questions to come to a reasonable conclusion: 

 

 

What is the current market structure? 

 

Currently, what we see on the 3D timeframe is a beautiful bottoming process. This process is showing the needed and anticipated strength in an area of support, creating large bounces and bullish local structures. Just as the one we are seeing right now. Locally, it seems to be an ascending triangle, which mostly is a bullish local structure, starting with an uptrend, a consolidation below a local resistance, and then a breakout. 

 

How likely is a breakout? 

 

As mentioned above, we are looking at a potentially local bullish structure. What we need to watch out for is not to react primitively and remain reactive. The rules on this structure are to wait for a breakout and look for entries either directly on a breakout or a re-test of the resistance. The most significant risk here is that DGB could still, at any point, decide to re-test our green area of support, confirming the bottom once again without even changing the bullish narrative. 

 

What impression give the indicators? 

 

The MKAST Algorithm gave a Buy-Signal quite a while ago. Considering rather aggressive settings, the possibility of a Sell-Signal increase with each candle. Especially in a very choppy and indecisive market, it is not the optimal entry right now. The TJ-Index is showing a slow increase and is not in a dangerously high area, which does indeed leave the possibility for a breakout. 

 

Conclusion

 

As elaborated above, DGB is in a bullish structure, locally and generally. An increase and breakout seem to be reasonable to believe. Nevertheless, the risk-management aspect is most important here, and it should not be disregarded. 

 

This Technical Analysis is made by Kong Trading. The provided Analysis should not be considered financial advice!

 



DISCLAIMER

The content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by Upblock or any third party service provider to buy or sell any cryptocurrencies (also called digital or virtual currencies, crypto assets, altcoins and so on). Trading and investing in cryptocurrencies (also called digital or virtual currencies, crypto assets, altcoins and so on) carries a high level of risk, and may not be suitable for all investors. Before deciding to trade cryptocurrencies, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading and seek advice from an independent financial advisor. ICO's, IEO's, STO's and any other form of offering will not guarantee a return on your investment. Since

Any opinions, news, research, analyses, prices, or additional information contained on this website is provided as general market commentary and does not constitute investment advice. Upblock will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. All opinions expressed on this Site are owned by the respective writer and should never be considered as advice in any form.