BTC Price Action! Bear? Bull?
Hi guys!
So sorry, I've been super busy with so many things. I've spent so much time digging into ICOs that I didn't have the time to write a post (I might write a post about ICOs in the future).
If you are trading bitcoin you'll probably went through the correction a couple of days ago. There has been a lot of information out there about what is going on, what is going to happen, where bitcoin is going to go.
And I've you're new you'll probably confused of which one should you hear and my advice to that ignore every one of them including this post if you want. The last you want to do in a market like this is panic sell at the bottom.
My mentor told me that most of the media and information out there are just noise. The price will bounce after a correction (this would be perfect opportunity to exit all your positions if necessary)
Nobody can predict what is going to happen with the price action. And if you see people posting chart saying BTC price will go to this way with fancy tools don't just simple buy into it. Then again I'll post chart about what you should look for in a market like this.
Tool used: Ichimoku Cloud & Fib Retracement
The indicator is simply telling us that the support has broken through (which is not good) but then again this run up has been parabolic. Simple tips for this ichimoku cloud; never trade while price action is inside the cloud.
Tool used:Fib Retracement
Check out the wick is nicely touching the 0.5 fib level. Market correction like this is not new in bitcoin price.
It is almost to be expected. If you think about it all time high is at USD$20,000 and last couple of days it went to USD$9,000. That is 50% correction for you or 50% discount (if you can look at it that way).
In my personal opinion fib retracement is the best tool for TA (technical analysis).
Tools used: Fib Retracement & Head and Shoulder
Most of the time H&S (head and shoulder) is a sign of reversal. Now you cannot say that you don't see that gigantic H&S on the 1 day chart.
I think if BTC price hits USD$8,000 that would complete the neckline and a strong confirmation of bear trend.
Bear with me guys this is the last chart!
Tools used: Fib Retracement & Trend line
This is the conclusion guys. By conclusion I mean price you should pay attention to for confirmation of either bear or bull trend.
My final advice is if you don't know what to do simply do nothing until BTC consolidates.
Hey I like your post. Following you now. Thanks for taking your time to write about this. Very help fun to many people I'm sure. Let's see where the market is heading in the next week.
I'm glad if this post help people. I'll try to make a post everyday.
I agree that people should buy Bitcoin and HODL (Hold on for Dear Life). But there are alot of people that like to trade (they find this very exciting). I don't understand why people can't do both. Buy some Bitcoin that you intend to NOT sale for any purpose to get those long-term gains. For instance, buying below $10,000 and then sell when it hits $100,000. That's a long term strategy and even if bitcoin hits $100,000 I wouldn't sell ALL of it. I'd let some sit it out in case Bitcoin goes higher. Then take a small amount and trade with it - have all the crazy, risky fun that you ever want to have. But you are right, so many people sell at the first sign of falling. They just don't have the fortitude to be early adopters.
My mentor actually hold some bitcoin from when the price was $200 but I think if you buy and hold from $10,000 not a good idea (at least in my opinion).
At this 5 digit price there is more down side then upside potential but as long as you have a plan for both bear and bull market you should be fine. Flash crash always takes time to get used to.
I remember losing 50% value on my positions a couple of months ago. It sucks but we all have to go through with it.
The TA you have done here is great and I agree that the fib retracement tool is a great tool, especially since it is widely used by the institutional investors (aka big money). Hopefully, we can get a greater amount of volume to come in to push the price up, as a 50% correction is very healthy for Bitcoin after its parabolic growth. Overall, still very bullish on Bitcoin as a store of value for cryptocurrency as a whole.
I think too much tool makes it hard to make a decision on your portfolio. Even the ichimoku cloud I don't use as often. I also think this price correction is the best time to average cost down on your positions (if they lose more than 50%) but you'll have to catch the dip which can be double edge sword.
I'm bullish on cryptocurrency too on the long term as long as developers keep doing they're research. But for a store of value might not be anytime soon (you won't like it if you account gets a 50% correction).
We're in the pioneering days of something special and I am very excited to see where things go! Dollar cost averaging is a double-edged sword I agree; however, if we look at in a long-term perspective, our portfolios are going to be up in a year as well. Overall though, you bring up some great points in this article.
Yes, if you check out the new ICOs and their whitepapers the concept and ideas are amazing. Regardless of the market we should prepare for both possibilities bear and bull. Also not to get caught up on the noise. I'll be glad to write another article.
Please keep the articles coming! I see that you share a similar level of enthusiasm about this technology that I do and I cannot wait to see what the future holds
Sure, I will. I will write the technology updates later.