Bitcoin - Maybe look at another chart?
Updated
The price is still going up well. If you have bought with me at around $8,450, make sure you move your stop loss to $9,077 as per my update. Unfortunately, if you are using Bitstamp your trades would have been closed with 7% profits. For others, just hold the positions to see if we can enlarge our profits.
Some of my students asked me - why did I think the price will go above $9100? Here are some of the reasons I mentioned:
1. The support at around $6,800 was quite important
2. Since the pump at $6,800 till now, I don't really see much selling pressure.
3. Although the accumulation period around $6,800 was quite short, the market hasn't show any period of distribution. So, why would you think the market will stop at $9,100? If you do, you are predicting the market and not reacting to the market.
One thing I have to emphasis is that when you bought at the start of the move (ie if you bought at 6k ish, please don't sell ALL your positions. This is because you don't know whether you will have the chance to buy them back. Instead, you should use a trailing stop.
Since Bitcoin is not doing anything unexpected, I want to share something with you that I found quite interesting. Let's look at the Bitcoin price chart on the left first. There are two major structures (support), one at 6k and the other at mid 5k, in which Bitcoin has not tested either of the two. However, if you compare it with the Total Market Cap chart on the right, the market cap has already tested the structure and found good support at the structure.
Let's also compare the resistance zones between the two charts. On the Bitcoin price chart, the resistance zone isn't as clear and the size of the zone is much wider than the resistance zone on the Total Market Cap chart.
As you can see, the Total Market Cap chart gives a much better trading opportunity and trading setups. It can be quite useful to determine the support/resistance and market trend when the Bitcoin price chart isn't as clear.
Hope you have enjoyed the analysis and has gained some insights to trading. If you wouldn't mind, please take one second to press the LIKE button to allow me to giving you future updates.
Past analysis (click & play):
Bitcoin, perfect call (300% profits)
Bitcoin, bought between 6.8k - 7.3k (30% profits)
Perfect call on 12k weekly resistance
Bitcoin dropped from 12k to 7k as expected (40% fall)
Bitcoin dropped to 3.5k as expected (40% fall)
Bitcoin, bought $6220 target $8480 (36% profits)
Perfect re-bought target
Education posts:
2618 trade
Top-down analysis
How I draw the trendline
Some of my students asked me - why did I think the price will go above $9100? Here are some of the reasons I mentioned:
1. The support at around $6,800 was quite important
2. Since the pump at $6,800 till now, I don't really see much selling pressure.
3. Although the accumulation period around $6,800 was quite short, the market hasn't show any period of distribution. So, why would you think the market will stop at $9,100? If you do, you are predicting the market and not reacting to the market.
One thing I have to emphasis is that when you bought at the start of the move (ie if you bought at 6k ish, please don't sell ALL your positions. This is because you don't know whether you will have the chance to buy them back. Instead, you should use a trailing stop.
Since Bitcoin is not doing anything unexpected, I want to share something with you that I found quite interesting. Let's look at the Bitcoin price chart on the left first. There are two major structures (support), one at 6k and the other at mid 5k, in which Bitcoin has not tested either of the two. However, if you compare it with the Total Market Cap chart on the right, the market cap has already tested the structure and found good support at the structure.
Let's also compare the resistance zones between the two charts. On the Bitcoin price chart, the resistance zone isn't as clear and the size of the zone is much wider than the resistance zone on the Total Market Cap chart.
As you can see, the Total Market Cap chart gives a much better trading opportunity and trading setups. It can be quite useful to determine the support/resistance and market trend when the Bitcoin price chart isn't as clear.
Hope you have enjoyed the analysis and has gained some insights to trading. If you wouldn't mind, please take one second to press the LIKE button to allow me to giving you future updates.
Past analysis (click & play):
Bitcoin, perfect call (300% profits)
Bitcoin, bought between 6.8k - 7.3k (30% profits)
Perfect call on 12k weekly resistance
Bitcoin dropped from 12k to 7k as expected (40% fall)
Bitcoin dropped to 3.5k as expected (40% fall)
Bitcoin, bought $6220 target $8480 (36% profits)
Perfect re-bought target
Education posts:
2618 trade
Top-down analysis
How I draw the trendline
Note
A different perspective using the two charts:
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