State of the Bitcoin - A quick study in price
Updated
A lot of people have been asking me for charts, and advice. In a summary, if you trade bitcoin, there is no clear position to take. The chart is bearish, but the price is not at a level where you can comfortably short. If you just want to buy some bitcoin, now is the best time to buy. Yes it may drop 2000 more, and then pump 5000. Dont chase the price, buy spot and look at it in a couple of months.
In the chart I posted you will see a few things. The blue dotted line is the long term 2017 bull channel. The yellow channel is the new upward push we started after September. The Daily has twisted bearish and the price is in the cloud (more like below it). For this chart to become bullish again, we need to see 15200 break with good volume. There is absolutely no good volume right now, and the overall volume has been decreasing.
My recommendation to traders is to wait for a bullish signal by the price breaking above the cloud. This is not easy to do, and at this volume this may take weeks or even months. We have resistance levels at 12500, 11750.
If price does decide to nosedive here with good volume, the bottom candidates are 10,800 (Channel Bottom), and 8950 (weekly pivot). A worst case scenario for price would be around 7600 (but lets not discuss that). My recommendation is to spray some bids around the 9000 dollar mark, and some higher around 10600.
In the chart I posted you will see a few things. The blue dotted line is the long term 2017 bull channel. The yellow channel is the new upward push we started after September. The Daily has twisted bearish and the price is in the cloud (more like below it). For this chart to become bullish again, we need to see 15200 break with good volume. There is absolutely no good volume right now, and the overall volume has been decreasing.
My recommendation to traders is to wait for a bullish signal by the price breaking above the cloud. This is not easy to do, and at this volume this may take weeks or even months. We have resistance levels at 12500, 11750.
If price does decide to nosedive here with good volume, the bottom candidates are 10,800 (Channel Bottom), and 8950 (weekly pivot). A worst case scenario for price would be around 7600 (but lets not discuss that). My recommendation is to spray some bids around the 9000 dollar mark, and some higher around 10600.
Note
Continuing this idea - on the 8hr we can see the 200MA and 50MA are about to cross in what is known as a death cross. Historically, I have found this to be an indication of a reversal. However, for this to reverse, at the cross, we usually see epic dumping -- this may still be true this time, where we see all those longs capitulate. Those longs are leaving money on the table for the bears to sell into. With no shorts at all, and no one willing to short the bitcoin monster, bears have a free for all buffet.Note
So the next question is obvious ... where do we bounce. In the last image i didnt draw the arrows, but its pretty apparent. Here is a chart with arrows:Note
Note
That candle is screaming buy.
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