Bitcoin Price Progression and the BTD'ers
If you were up late last night (EST) you would have seen that the majority of crypto currencies were taking a big hit, Bitcoin included. There was blood, that is for sure.
Bitcoin and the other major cryptos seemed to have bounced off some significant technical areas of support.
So as we've been tracking the price progression of bitcoin, we saw it breakout from what is known as a pennant or symmetrical triangle. However, the momentum waned and bitcoin didn't have any conviction behind that move and it began to slip, fast. It appeared to be a drag on a lot of the major digital currencies as well.
BUT! it looks like we bounced off of a key area and the BTFD'ers came in full force (Buy The F*cking Dip). Bitcoin touched down on the bottom trendline which incidentally was a pivot on the 4 hour time frame (a make or break moment to say the least) and continued to progress up and through the 50 day moving average. YAY!
Its not over yet, but this is surely a good sign for the holders of bitcoin and many of the other currencies as well due to their correlation.
Can it continue?
Of course it can continue, anything is possible. I suspect it will not be an easy journey up but our momentum indicators on the 4 hour time frame are starting to turn bullish. Traders often use the 4 hour time frame to back up their reads of the daily chart, this is how we predict a few days of price movement.
So you want to jump in? Well remember we don't chase and we only buy pullbacks on confirmation of reversal. To figure out when the next pullback, is we have to dig a little deeper and it is the hourly time frame that stands out to me.
The stochastic RSI, a momentum indicator is super extended, this will need to correct. It could happen fast or slow, but its quite possible we see another test of that pivot - or we flatline here and consolidate, either is good.
What bulls don't want is for bitcoin to fail that pivot approximately $2463 and continue trending down. So from here, you either jumped in on the dip last night (and have a stoploss to lock these gains) or you are waiting for entry.
What ever you do, remember, manage risk, use stoplosses, only buy pullbacks. If you are an investor scale into position.
Now if everything I wrote above just sounds like gibberish, never fear, I will be putting together a blog about my technical analysis methodology and would be happy to discuss if you have questions!
What I don't do is provide entries and exits, I am not here to tell you when to trade, my goal is to show you technical analysis, just another tool in your toolbox.
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Not Trading or Investment Advice - Educational resource
Best advice and most critical information in this article, "So you want to jump in? Well remember we don't chase and we only buy pullbacks on confirmation of reversal." I wish I could do that before I hit the SEND button every time.
It happens to the best of us. Gotta try and stifle those emotions and fear of missing out! Thanks for your comment!!
Market in BTC and ETH seem pretty slow today. I'm sure that its due to being a Sunday during the summer . Gives me a good feeling that the next move is up due to the old adage, "Never sell/short sell a dull market".