Price action broke from consolidation, and hovered underneath resistance at $333. Instead of trending lower, price action climbed the ascending trend line and rallied to $306. As said many times, these rallies are almost sold. This one was no exception.
Technically speaking, traders should have exited their trades after the ADX ticked lower, which is the first indication of momentum snapping (indicated by arrow).
Price action is held below broken, then reestablished, resistance (blue lines). A retest of $333 is possible, while a test of the fomer ascending trend is probable.
The FOMC minutes could provide momentum in any direction, given that this forex pair is bitcoin pegged to the dollar. A weaker dollar could provide momentum to $274, while $221 to the downside is possible on dollar strength.
___________________________________________________________________________________________________
I was curious about the exchange that is offered by Coinbase. It is registered and fully insured, which is comforting. However, the web-based platform is rather archaic. There is virtually no charting ability, so traders will need to use their own of preference. It does offer a "depth" chart and order book. So, this may be beneficial to traders who can execute using these tools. The average trader may not.
Previously through Coinbase, it took 4-5 business days for a BTC purchase to complete or any dollar deposits. This was completely mind numbing. The exchange somewhat remedies this.
Unfortunately, the liquidity is ever present. For instance, only 2,000 BTC were traded in a 24 hour period when I used the platform. This could increase, but my order for .15 BTC took over two hours to fill.
The other issue is there is no speculation to the short side, and this creates a one-sided market (next EURCHF?)
The illiquidity is a major concern if traders look to use the exchange for that purpose. However, it is beneficial for those just looking to scoop up BTC without the four day hold.
I believe it could get better as kinks are worked out, but time will tell.
Full disclosure, I purchased BTC at $219 last week and sold at $274 on 1/26. Currently, a small speculation trade averaged in at $250 BTC/USD. I won't put substantial money to work, but it can pay for my chemical dependence on caffeine :D
Technically speaking, traders should have exited their trades after the ADX ticked lower, which is the first indication of momentum snapping (indicated by arrow).
Price action is held below broken, then reestablished, resistance (blue lines). A retest of $333 is possible, while a test of the fomer ascending trend is probable.
The FOMC minutes could provide momentum in any direction, given that this forex pair is bitcoin pegged to the dollar. A weaker dollar could provide momentum to $274, while $221 to the downside is possible on dollar strength.
___________________________________________________________________________________________________
I was curious about the exchange that is offered by Coinbase. It is registered and fully insured, which is comforting. However, the web-based platform is rather archaic. There is virtually no charting ability, so traders will need to use their own of preference. It does offer a "depth" chart and order book. So, this may be beneficial to traders who can execute using these tools. The average trader may not.
Previously through Coinbase, it took 4-5 business days for a BTC purchase to complete or any dollar deposits. This was completely mind numbing. The exchange somewhat remedies this.
Unfortunately, the liquidity is ever present. For instance, only 2,000 BTC were traded in a 24 hour period when I used the platform. This could increase, but my order for .15 BTC took over two hours to fill.
The other issue is there is no speculation to the short side, and this creates a one-sided market (next EURCHF?)
The illiquidity is a major concern if traders look to use the exchange for that purpose. However, it is beneficial for those just looking to scoop up BTC without the four day hold.
I believe it could get better as kinks are worked out, but time will tell.
Full disclosure, I purchased BTC at $219 last week and sold at $274 on 1/26. Currently, a small speculation trade averaged in at $250 BTC/USD. I won't put substantial money to work, but it can pay for my chemical dependence on caffeine :D
