Bitcoin Trading - May 29, 2017
Bitcoin is in a consolidation pattern right now. Will it go up or down? Will it go up and down? Let's see what's in the charts.
Since price action has been sideways since bouncing off of support at $1900 and $2000 yesterday, I removed the head and shoulders arrows. I don't think it's going to materialize. I did see something else going on though. Can you guess?....an ascending triangle! Bitcoin loves to consolidate into these triangles.
As you can see, we are having higher highs and higher lows overall, so it still looks pretty bullish. The other bullish signals are all those long wicks I pointed out with blue arrows. They show a lot of buying pressure. Buyers are gobbling up the dips.
I don't know if the holiday has something to do with the sluggish recovery or what, but I would look for price to continue to consolidate in this triangle until everybody sobers up Tuesday. Haha. I also noticed there were less than 30,000 traders on Poloniex today and lately there have been upwards of 40,000 every day, so it seems lots of people are enjoying the long weekend. When price breaks $2386 we can say the uptrend is going to continue. I chose this price level because we've had some resistance/support previously at $2386. All those orange circles are where price has bounced off of this level. Pretty cool huh?
Once the market has broken out of that $2386 resistance level, we'll be looking for it to break the next resistance level at $2669. Hopefully, that can happen Tuesday as well. As always, keep your stops tight and trade safely.
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BTC: 13vkcSViikMSmhokiHxgRqWnFz2ErgApyw
LTC: La3rT258PJ8kX2WiWLfX5MrmurSEuRHX1W
Dogecoin: DNHjTrBssQx6v5u8W6hSrej9ocAX5ShGDb
Monero: 47PwackL2h6H7myZVjMAKfGEViXEHsYgHUup28BeKtEEasYg9MxB5RtaUktb5AUK69YbQ28EYCEe1LTnYcz5AkmFRU1rPWk
Dash: XavE5B9FicDbeTeemGoYi1dnx8s1U5vsDR
ZEC: t1ZGnFx54UDW66d2rfSvcHMNYqpm8iraCMf
Ethereum: 0xca036585ccb3732188adc69c62f3c3c0f0177e1d
ETC: 0x2f185ff241b543d6452455d4b73376b7958b5209
PIVX: DSBKpyUY6epRQmpaFesFFV3H93QTPmJmQQ
Burstcoin: BURST-XFYD-YU7K-9MC5-3GYMT
Golem: 0xca036585ccb3732188adc69c62f3c3c0f0177e1d
Augur: 0xca036585ccb3732188adc69c62f3c3c0f0177e1d
Disclaimer: I am not a professional. Trading is risky and you could lose money. Only invest if you're sure what you're doing.
Looks like the bulls are back in town! great post!
Thanks @thehulk!
Hey @ancapwarren, thanks for your analysis. Usually, I don't understand what the graphs are about, so I appreciate you explaining how you found the resistance/support values. I'm new to cryptocurrencies, so it's a big learning process, but I'm starting to understand how people think about price fluctuations because of your hard work. Thanks again!
Hey, thanks Jay! That means a lot to me!
Do not worry a bit. Stop worrying about the technical and look at facts. We are yet to see the actual influx of a massive flight to safety still. The real meat of Bitcoin is still ahead of us, considering the fact that there is only 6 million bitcoin users to date vs a 7 billion world population, and there are trillions of fiat currencies still yet to be converted.
Very true, but I enjoy doing the technical analysis. Plus, it gives me a record to look back on and see if I got it right or wrong, and it's good practice.