Yesterday we looked at BTC and I mentioned two scenarios (which usually bugs me about other peoples TA). I did make the case that we were going to rebound at the level - but I also drew a bear line which would indicate things may drop down a bit further (which is what happened).
In the hours since, the chart has given an indication of where the market is set to go. The trades I setup yesterday were for buys - today is another day to take a buy position if you are in cash. Buying while the market is still bear is usually rewarded quite well.
It looks like an inverse H&S is forming - you can see the left shoulder and the head highlighted in the chart. This means we should "move sideways" at this level before we start tracing the right half of the pattern and return to $7200.
So whats the play?
BTC is volatile which is why most of us like trading it. Unlike stock trading there are no rules - there is no regulatory body to report to. This has created a situation where large stakeholders (whales) seem to manipulate the market in tandem (collusion). The future of BTC will involve the institutions overtaking the whales - which will probably profit us all. In today's market we are still very much affected by whale trades - in this instance they are more likely to drive up the price (before they try to drive it back down again). The challenge is to not get caught in the "bear trap". The play right now is buy at $6450 USD and hold to $7200 USD which will likely take until Friday to complete. A whale could change the time frame very quickly - we could very well shoot past 7200 in a few hours. There is also the possibility of weekend traders triggering some big buys and boosting us up even higher. Trading BTC is about technical analysis, momentum and psychology. Is a 2k BTC in anyone's best interest (besides mine)? The chart says we are going up - the only question is - do we take the whale express or painstakingly carve out the right side of the inverse H&S? If anyone is questioning if this is the apocalypse - i'd be glad to buy your BTC from you at a discount!
** I am a full-time trader trying to provide some guidance to those who aren't. Please Like and Follow this post if you would like to see more charts.**
Buy it now ( Don't buy more than you can afford to lose).
No fears even if the price continues to fall. HODL. Wait and be patient. Don't despair.
Enjoy yourself for some weeks or months ...Stop to see the prices every 5minutes.
One day...(who cares when - It will be sooner than later) you will sell it for 20K or 25k ...or more.
@junoooo, I think if we fast forward to October we are going to see a different picture.. We could have another wave before a true recovery.. I believe that might take us up near 8500-10k before another dip.. I think BTC will be at least 25k at some point before the end of the year - but I dont think we are going to trade at those levels until the fall.. Im sceptical of any "recovery" until we get confirmation of institutional money coming on board.. Once that happens BTC could skyrocket "overnight".. I always take a few positions for this reason... Last year we were hitting 2500 and 3k lows - this year its been low 6000s.. thats still a 1x gain which is better than any other market! We are close to ready to reverse at least for the short term. Thanks for commenting!
HongSongkong
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i always ready for bull run, but the bull never ready for me
rgeddes
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@HongSongkong, At these levels its hard to imagine a scenario where we go significantly lower... We are due for at least some form of "recovery".. We will start testing 7200 this weekend...
rahulverma0127
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You are going to be so right this time. Lets kick them bears on their behinds.
rgeddes
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@rahulverma0127, I agree.. I think we we will see the head form today and then the right side should play out by the weekend.. unless a whale decides its time to buy!
No fears even if the price continues to fall. HODL. Wait and be patient. Don't despair.
Enjoy yourself for some weeks or months ...Stop to see the prices every 5minutes.
One day...(who cares when - It will be sooner than later) you will sell it for 20K or 25k ...or more.
Thats what Im doing now.
Cheers !!