2 Extremely Rare BTC Daily Chart Indicator levels Hit
I'll keep this short and simple today in regards to BTC and the ongoing bloodbath. I'm very curious to see how much more selling there is to be done the rest of the week as there are 2 indicators that are at extreme lows shown in the chart below
- The Relative Strength Index (RSI) value is now in the 20's on the daily chart. This level has not been seen since late summer of 2016. Look at the rest of the chart since then and it's always bounced right off of RSI level of 30. We are entering seriously oversold territory on this timeframe.
- The lower bollinger band has been breached which happened briefly in the middle of January a few weeks ago) and mid September of 2017.
I'm not calling the bottom and I'm holding off on any buys until I see something to convince me the panic selling is going to subside soon. But the extreme levels that these 2 indicators are at on the daily chart lead me to believe at least some consolidation or even a decent bounce back to $8k or so is in order even if it's just a dead cat bounce.
If you've bought high, yeah it sucks, but you either take the loss or HODL. Just remember what happened to those who weathered worse storms in this market in years past with BTC. They're still way in the green and BTC is still hundreds of % higher than it was a year ago.
My opinion--5,800 USD - 6K level holds at least for a week or so. This is not gospel, just my opinion so take it for what it is (or isn't) worth.
This is not trading or investing advice--always do your own research before buying...as you can see from the chart, you can lose your shirt in a matter of days in this crazy market.
Yes, you are totally right. The current bitcoin millionaire have all been trough at least one crash like this. This is the path we have to walk to eventually reach the moon! HODL and dollar average to the next ATH!
I love dollar cost averaging. It's how I acquired a lot of steem power when STEEM was at it's low point in fall of 2017. I bought hand over fist on a weekly basis--sometimes 3-4 buys per week.
But yes, we must not let our emotions over losses that are not real losses until one sells break our spirit. HODL!
According to the firm Autonomous Next, the number of hedge funds investing in digital assets like Bitcoin has grown rapidly to more than 100. Since the launch of Bitcoin Futures on the Chicago Mercantile Exchange in December 2017, it shouldn’t be a surprise to anyone why the price of Bitcoin is down 50% from the high.
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Only Retail Investors chase price and buy high and sell low, while the Professionals buy low and sell high. The Hedge Funds have purposely sold Bitcoin futures to get in a better price.
At the moment, there is a war taking place between the buyers (Hedge Funds) and the sellers (Retail Investors) called capitulation. That line in the sand was at $9000. Capitulation is when investors give up any previous gains, by selling, in an effort to get out of the market. Capitulations are outcomes that result from the maximum psychological and financial pain that can be endured by a group before throwing in the towel. The Retail Investors are throwing in the towel after seeing a more than 50% correction in the Bitcoin price to the buyers, the Hedge Funds. With 100s of millions of dollars to invest, we are witnessing an accumulation phase by the Hedge Funds between $6000 and $9000.
The Hedge Funds are loading up and buying from the Retail Investors. But to fill all their buy orders, as the sell orders dry up, price must go down to the next stack of sell orders. We are approaching what I believe will be the bottom of bitcoin at $6000. My first target is $12,000 and my second target is $17,000 over the next 3 - 9 months.
The easy money has been made over the last 12-18 months. With the big boys in the game now, the rules have changes. The question is, are you ready to play to win with a new play book?
This post is my personal opinion. I’m not a financial advisor. Do your own research before making investment decisions. By reading this post, you acknowledge and accept full responsibility of any gains or losses.
You're right about the capitulation. I'm familiar with the term from my stock trading days.
The entry of the hedgies is going to change the game significantly as you said and we're gonna have to play by a new set of rules as you said. My strategy is a long term one and I have not sold a single dollar worth of my crypto investments since I began amassing my portfolio. I did trade some BCH for a few ounces of silver when it was higher but that's all I've traded for something else.
I feel for the people who bought high and sold low. I saw it happen in the stock market on the investorshub boards all the time when that used to be my playground a few years ago.
This was a great response, btw. I appreciate the feedback! Followed.
Thanks for the comment and follow..right back at you. The Blockchain is the Internet 2.0, but it will be bigger because more people on the planet will be able to take advantage of the technology. HODL.
I see it drop to 5500-5800 in the next 24 hours
Yes there's a possibility it could be a dead cat bounce or the beginning of a consolidation phase. Time will tell. Lots of people missed out getting in between $5800 and slightly above because once BTC broke that resistance it went up really fast and many those buyers probably didn't chase it.
If it does drop to that level I'll pick up a little bit. I don't have much left to put in at this point.
Yes i think 5500$ will be the ground.
I believe what we're seeing no is decoupling bitcoins from other cryptocurrencies. I don't want to predict the future, but I stay away from bitcoin while loading on some other perspective coins on deeps.
I've stayed pretty light on my BTC position lately myself for reasons I won't go into. But it is strange that it is all dropping at the same time. Several months ago when bitcoin went up, usually altcoins would drop and vice versa. I wonder--is this a paradigm shift or a one time event? I would guess the former.
They keep dropping together at the same time, but notice that everytime they drop, then prospective coins recover much stronger then bitcoin.
Good analysis. Any idea how much time will it take the market to recover to become a $800 Billion market again?
It could happen in a matter of a few weeks or it could take a year. So, to answer honestly, i have not idea :). But if I were to guess, maybe in another 1-3 months depending on what kind of dishonest media reports and oppressive government regulations occur. This is a pivotal time for the crypto market as many governments are beginning to ponder what their policies should be regarding digital currencies.
This makes a lot of sense to me, I am not expert but you seem to know what your talking about :)
A lot of people like to use elliot wave theory for cryptos but I'm not versed in it so I like to use simple supports and resistance levels as well as RSI and bollinger bands on my charts.
The indicators don't always reveal the future, but they're better than nothing and when used properly they can be powerful tools when deciding where to put one's money and for how long.
I must make the time to teach myself some more about these things
Cheers
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