How to Use the Drecken Overlay to Spot BTC Breakouts
In the last roundtable, @rollandthomas introduced us to the Drecken Squeeze and Momentum indicators and how he utilizes them to help spot potential breakouts on Bitcoin charts.
Coming from my perspective where I have limited exposure to technical analysis, I find these simple and easy-to-use indicators to be informative. While I have a long-term position and fundamental understanding of BTC and don’t trade it very actively, I still like to understand the short-term price actions as much as anybody else.
During the analysis, we talked about previous price breakouts and how the Drecken indicator spotted them as consolidation was forming beforehand.
One of the most interesting timeframes from this analysis is the pattern that we are currently in. You’ll see it in the chart, but the indicator shows the last 2 weeks of consolidation in the price of BTC and how the potential for a large-scale breakout seems to be growing stronger and stronger as we sit in this limbo period.
We did this analysis on the roundtable just a few days ago when the price of BTC was $9,600 and today as I’m hitting post on this clip, the price of BTC is trading at $9,700.
We are still in a long period of consolidation and from my personal understanding of this indicator, each day that passes makes the coming price breakout exponentially more impactful.
Whether you’re into Technical Analysis or not, I think these types of videos are incredibly informative. As I said, I’m a long-term investor but utilizing these indicators still has a major impact on my ability to accumulate BTC.
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