Bitcoin Trading - April 22, 2017

ancapwarren (53)in #bitcoin • 7 years ago

It must have been a wild night for traders last night, and I missed the all the action. The Bitcoin price tumbled to $1222(dotted purple line) before resuming it's path to $1300. It fell out of our short term trend channel, but I'm going to leave it in place, because it is already almost back in it. If price goes sideways for a while I'll remove it.

So, what happened? Was there some new FUD that I missed? What can we expect to happen now? To find answers, we're going to reach into our toolbox and pull out every traders best friend....the Fibonacci Retracement Tool.

If we measure the whole bull swing to $1259, what we find is a .382 retracement on the Fibonacci Retracement Tool. Nothing to be concerned about. The price had been bumping it's head on $1250 for hours and some traders probably decided that was a good place to extract some profit, thus causing the price to come down, thus causing more selling, thus causing a .382 retracement. It's not just that, remember yesterday we talked about $1250 being a psychological number? That plays a part as well. If we look left on the chart, we'll see several places where $1222 is resistance on the chart. Now that level has been retested and is now support! Now we find ourselves right back where? Yep, $1250. We expected this, right?

The Bitcoin price could do this another time or two, or it could move on. It'll be interesting to see how the market responds in the next hours and days. I still expect a big bullish run to $1300 at any time. We are still dead center of our long term weekly trend channel and right on pace to see $1300 in the coming days/weeks.