Chart of the Day: Is Bitcoin Really Waking Up from its Commissions?

quoted from : investing.com

Chart of the Day: Is Bitcoin Really Waking Up from its Commissions? Chart of the Day: Is Bitcoin Really Waking Up from its Commissions? Investing.com | 04/04/2019 20:22 Be the first to comment After looking like an endless coma, Bitcoin suddenly jumped 17.4% on Tuesday, slicing 200 DMAs as if the key metric wasn't even there. This is a big leap of digital currency since the heyday of cryptocurrency at the end of 2017.

Yesterday, the most popular digital currency based on market capitalization extended the down payment by 6% and ended the session up 2.3% at $ 4968.7. What drives this unexpected progress is unknown and there may also be no hidden catalyst.

Digital assets are very much traded by retail traders. This is famous for its volatility, with the sudden ups and downs triggered by nothing more than rumors and random movements that roll. Bitcoin has stopped the hearts of many traders, both traveling up to $ 20,000 in December 2017, and on the way to the level of $ 3,000, where it has languished until Tuesday.

What the trader really wants to know is whether something is moving, encouraging those who know to take the contract before they return to what crypto fans consider to be a balanced value.

Even though we don't know what the problem is, we can try to weigh the possibility of reversal and advise on how to manage trade for a favorable risk-reward ratio.

The price, in fact, completes the bottom, in the form of a symmetrical triangle. That means that since November 2018 and until breakout, supply and demand have been deadlocked. Breakout, however, shows a shift in that dynamic. Such reversals tend to turn into transformations, because those who are wrong join the winners, and those who correctly improve their position.

However, even if prices have indeed reached their lowest point, traders can still end up in losses if they enter half-cocked. While prices rose for the fourth consecutive day, Wednesday's jump was closed far from high.

This forms a potential shooting star, because the price looks at the level of $ 6,000, which is suspected of being triggered by resistance in 2018. Therefore, we urge patience. Wait for the withdrawal, even at the risk of losing this step.

Trading Strategy
Conservative traders have to wait for a complete step back to the triangle at the low level of $ 4000 and look for reflections that will confirm the support of the pattern, with at least one long green candle that swallows a red or small candle of both colors. Moderate traders may wait backwards for better entries but may not wait for trend confirmation. Aggressive traders can enter the opponent's short position, if the price approaches the high of $ 5,330 yesterday.

Sampel Perdagangan

Entry: $5,300
Stop-Loss: $5,350
Risk: $50
Target: $5,000
Reward: $300
Risk-Reward Ratio: 1:6