Bitshares (BTS/BTC) Update 21/06/2017: Is Correction About To Over Or Continuing?????
Bitshares is trading weak today and this weakness has become more concerning as it is trading below 10 Days EMA at 11K Satoshi for first time since it had hit a all time high of 17k Satoshi on 10/06/2017. In my last update on 19/06/2017 (https://steemit.com/bitshares/@jimmyrai28/bitshares-bts-btc-update-19-06-2017-distribution-is-still-on-good-sign-or-bad-sign) , i have shown concern on distribution pattern, and this concern I am afraid is becoming more visible in form of weakness in Bitshares prices.
IF, I quickly draw your attention on chart below or above, I want you to take note of 10 Day EMA(Red Wavy Line) that how it has been held as support up til but today not only this script is trading below that but also kind of sustaining there. The level 11k Satoshi on which this script trading is important too as there is horizontal support line marked as Support 1 lays; if today it closed below this support then this will result in more sharper correction and next support after this a violet color trendline which lays at around 6k satoshi. So, today close is kind of important one to watch.
On the other hand if this support (Support 1) held which is also quite possible as this weakness in prices are not supported by volumes. Any movement be it up or down need good volumes as fuel to sustain, but If one notice volumes are very thin today and I have marked this in Yellow highlighted circle in bottom of chart. It is encourage sign for bulls as trend may change but concerning sign for bears as they can loose their profits easily if this script turn around.
In conclusion, I again repeat close of today is important, as higher volumes tomorrow can result this script to go higher as well lower and closing point today can give some sense of coming movement.
(Chart is same as above)
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Thats an extended move upward. It doesn't give a very good opportunity for traders to place stop orders in the market without risking losing all their gains from this pop upwards. This can lead to very sharp moves, to the downside, as traders panic and exit based on emotion. The short term traders will have placed their stops just below your support line. This is the only logical place that traders (keep in mind ALL traders are generally taught to use natural resistance points as stops...some use ma's and crap though) will have to place their stop orders.
The buy orders have been filled...and to a significant degree as depicted by this strong upmove....so what does that mean for the market.....???....LOTS and LOTS of stop orders clustered together!
Stop order filling time!
This is one of best comment i have got since i start writing technical analysis on steemit, and yes spikes are just results in triggering of sl both ways, and your are also may be right in figuring out that this downmoves has triggered all buy order, now next move which can be on upside will execute various sl of bears on upside.
Thanks once again for stopping by, and sharing your views with me.