Bitcoin (BTC) Update - Technical Analysis - March 1st

in #bitcoin7 years ago

We are currently in a pretty neutral zone here, as we're still deciding on the market sentiment.

From my analysis, it looks like we have completed a full corrective wave A, which is clear now that we've had a change in the short term trend.
(Corrective wave A will always contain 5 waves. If you are unfamiliar with Elliott wave theory I'd be happy to point you in the right direction).

So from this we can now figure out that we are now attempting an impulse move up. There are going to be areas of resistance along the way, and so make note of price action where we see bounces up or down (resistance or support).

At the moment we are looking to see BTC hit above and close above $11k, but my current shorter term thoughts are a little bearish, as it looks like we are currently headed to test $10.5k. The 55 EMA will be crucial here (my yellow moving average) as we need to use it as support and get some distance from it to confirm more of an uptrend long term.

If we close above $11k, that's an official bull market, if not, we'll just have to wait a little longer (not that we haven't been patient enough haha).

My current trading strategy for BTC:

I'm not trading it until we either break above $11k, or break down below 10k. This range is a fairly neutral zone, and so there's not much room for risk management strategies in order to maximise potential profit from trades.

Keep an eye on the daily chart and the 4H charts for candlestick reversal signals. Remember that one candle does not confirm a reversal, make sure you confirm with a combination of reversal signals like lots of long wicks, dojis etc. and increased/ decreased volume as well as using moving averages and indicators to give you a clear picture on the direction the price will go!

Any questions you may have, please post them below and I'll do my best at answering them!

-B