In the charts above we are looking at the correlation of Bitcoin and Crude Oil on the daily time frames from November 2020 through to the present day.
One can see that since November of last year and even back further, the price of these two were largely correlating. We can see on January 5th, 2021 that both Bitcoin and Crude Oil setup for very bullish breakouts. Around the middle of January Bitcoin has quite a large pullback while Crude Oils pullback is not as severe.
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Both Bitcoin and Crude Oil setup nicely for a bullish entry on February 2nd and go on significant rallies before they both pullback late February and early March. Present times both Bitcoin and Crude Oil look to continue the correlation although Bitcoin today looks more bearish.
When looking for perfect long entries I like to see a solid green candle with the DEMA moving average going through the body of the candle, or at the very least touching a decent amount of the candle. You can see on both setups January 5th and February 2nd the candles and DEMA are all touching.
