BTC--Another ATH, but mind those indicators!

in #bitcoin6 years ago

This isn't any secret or news to anyone in the cryptosphere but I wanted to point out a couple of reasons why I'm not buying Bitcoin at this level.

BTC.JPG

Two of my favorite indicators on chart are RSI (relative strength index) and Bollinger Bands. These tools can help us decide when is a good time to buy or sell along with the classic support and resistance levels that I use pretty often. Since we're in uncharted territory with the price of Bitcoin I'd like to point out the following 2 things...

  • On the daily chart Bitcoin's RSI stands at 87.25 (above 80 means it is overbought on this time frame where each candle represents one day of price action).

  • It continues to ride the upper Bollinger band and one can see that there are periods where it has fallen closer to the middle bollinger band

I have been waiting to add to my bitcoin holding partly because of these two things and also because I've put most of my weekly buying allotment into Monero earlier this week (already talked about that plenty recently). I will continue to wait until that RSI dips back down at least to the low 70's and the top of the candle pulls below the upper bollinger band before I buy more Bitcoin.

My buys and strategies are long term and I like to get the best price possible so I pay attention to these things when considering what to buy. I still haven't made up my mind yet as for what I'm gonna buy today or maybe I'll just hold offf til later in the week.

I'm not saying to hold off on anyone else's buys by any means, just saying exercise caution and do a little bit of research and learn some simple tools to analyze when is a good time to buy. It's what I do and I am waiting to see a pullback in BTC coming semi-soon.

I could be wrong (have before and will again I'm sure).

Please do your own due diligence before buying / trading any crypto or any type of asset. This is just one guy's opinion so don't let my ramblings keep you from buying / selling or convince you to do anything you wouldn't normally do if you hadn't read this post.

Have a great day all!

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Always nice to see your vote on my posts. I gotta get back to showing off my stacks!

we should see a transfer to BTC soon, currently BTC is 58% dominance so, I'm expecting a transferring 7% into big altcoins, possibly DASH between them

Yes now that it’s above 13k that daily RSI ya gotta be above 90. Way way overbought. Maybe the hedgies ate pumping it to set up for a short play (luring in small novice buyers at these levels).

Thanx for sharing your strategies with us.

No problem my friend. Thanks for the reply!

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