Shh, Filter Out the Noise in Bitcoin Using Candlesticks and On-Chain Data ↓

Shh-Filter-Out-the-Noise-in-Bitcoin-Using-Candlesticks-and-On-Chain-Data

• As shown, Bitcoin demand began to contract sharply before it directly affected price:

1) Last higher low in Apparent Demand Growth (ADG) before its latest peak. BTC: $118K.

2) BTC price ATH ($126K) and ADG’s latest peak (1M BTC).

3) ADG closed below the previous higher low. First sign of weakness: Apparent Demand Growth began to contract. BTC: $123K.

4) The first lower low formed after ADG’s latest peak. BTC: $114K.

5) The last lower high before the big decline. BTC: $101K.

6) Bitcoin’s price closed at $94K (Nov 16), below the SMA50 ($102K) on the weekly timeframe. The SMA50 had already flattened and lost its positive slope. All of this was a strong sign of weakness in price action.

• If you want to know why Apparent Demand Growth is displayed using Candlesticks, check the link below ↓