Bitcoin Trend Series / EP. 603 / Strong Upward Trend Despite Sizable Pullback

Time: 8.44 A.M. / GM+2 / 25th May 2018 – Fri.

Recapitulation

Little Johnny asks his father:
"Where does the wind come from?"
"I don't know."
"Why is the earth round?"
"I don't know."
"Why the price of bitcoin go down?"
"I don't know."
"Does it disturb you that I ask so much?"
"No son. Please ask. Otherwise you will never learn anything."

As you see people keep asking,
Will Bitcoin Price Continue Its Decline!!!

• The price of bitcoin on May 24th 2017 was 2.250K and at the time many thought It Was A Bubble. Yesterday May 24th 2018 we're seeing lows of 7.260K, which isn't as strong as the 19.785K peak but certainly still in A Strong Upward Trend despite the sizable pullback.

• Bitcoin price after testing the low of May at 7.260K, due to the 2 weekly
  ( G seen on chart ) bearish stop grabbers supported by Daily Ichimoku Cloud, shows some bullish supported by A Bullish Divergence that was seen on stochastic yesterday as expected, the reason why we BGT at 7.3K and we moved our SL to Breakeven after few hours.

Market Factors

• Since Bitcoin price topped after a 3-wave advance on December, 16, 2017 at 19.785K, it's been downhill from there with the occasional multi-day to multi-week rally. If we dive into the market movements, we need to take a good look at volumes. Here we can see that the Total Volumes Have Been Dropping Steadily over the last few months. To be honest, this sharp sell-off coinciding with a volume spike is not great news for the price action, But as traders, it is good for us at this moment to keep an eye on the next support at 7.210K / 78.6% Fib, that we believe there area a big chance to hold, the reason why we came up with a Buy Call at 7.3K yesterday.

• The Justice Department has opened a criminal investigation into whether traders are manipulating the price of Bitcoin and other digital currencies, Bloomberg reported Thursday. The Department of Justice investigation arrives just days after the North American Securities Administrators Association (NASSA) unveiled Monday "Operation Cryptosweep" to crackdown on fraudulent cryptocurrency activity.

Technical

• In our previous post / 602 / we had forecast the trading range will be between 7.402K and 8.175K. The intraday high was 7.729K and the low was 7.260K.

After the break of 7.614K - 7.770K area
We must keep an eye on 7.210K

• Primary Scenario / A / Bitcoin price should not drop below 78.6% Fib at 7.210K of the prior April to May advance and ready for a climb to eventually break the key level at 10.158K.

• Second Scenario / B / If 7.210K level breaks ( Daily Close ), the bearish development will lead the price to The Pain, below 5.947K.

Sentiment
Based on the above, we will suggest / Neutral Trend / for today.

Support 1: 7210.000 level.
Resistance1 : 8175.00 level.

Support 2: 7100.000 level.
Resistance2 : 8400.000 level.

Expected trading for today:
is between 7210.00 and 8175.00.

Expected trend for today :
Neutral.

Medium Term:
Neutral.

Long Term:
Bullish.

The low of 2018:
5947.00.

The high of 2018 (BitcoinTrader's Year):
16046.00 / Expected.

The low of 2019: ???

The high of 2019 (Bitcoin Holder's Year):
36000.00 level / Expected.

YOU SHOULD NOT TAKE ANY MATERIAL POSTED ON THIS BLOG AS RECOMMENDATIONS. TO BUY OR SELL BITCOIN OR ANY OTHER INVESTMENT VEHICLE LISTED.

Writing a series means playing a long game,
investing considerable time and effort up front in
hopes of considerable returns down the road.
I'm so proud of my little blog, and so grateful to all of you
for support to keep it going.

If You are New in Trading  --> Read Trading Education Center / Volume I.    

What You Know About --> Fibonacci Retracement in Trending Market.   

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