BTC Technical Analysis
Hey Guys so yeah I am not a professional by any means.I am sharing my views based on whatever I have learnt about TA in the past few months.
So it appears as though bitcoin is finally entering a correction phase so lets try to break it down.
Whenever something major happens in the markets I like to consider these 3 Indicators to get market sentiment
So for starters the Volume for BTC in the last 24 hours was 19 billion which is significant.This helps in understanding that if there is a move in the market it will be significant.Volume is a key indicator i consider for understanding the market.
Secondly we consider MACD scale(Green Mark) on the daily chart.
The blue line(12 day exponential moving average) which was above the orange line (26 day exponential moving average) is finally dipping under the orange line .This is generally an indication of a downward trend especially when followed by the volume.
Lastly we consider the Relative Strength Index (Green watermark).
The Relative strength index of Bitcoin was originally over extended(overbought) but now Bitcoin is back in between
30 and 70 on this scale .
In the past we have seen bitcoin bounce from 30 on RSI but i don't expect this correction to be that long.I don't know the most profitable entry points but i will be keeping a close eye on RSI to see where it finds some base and make my trades accordingly.
Feel Free to let me know what you think about my analysis.
so if we were to look at your RSI, where would the 30 RSI be? i guess it will go somewhere between $10k - $12k in next correction. if it breaks below 10k then the new money will go out and it settles well below 10k
I believe that on RSI scale chances of it hitting 30 are slim but possible.BTC may go down to low 14k but i feel like there's a lot of money that wants to buy it cheap ,since the price increased too fast a lot of the buyers didn't get to buy it and we might see them buy at either 14k or 12k .
all this new money that has come in recently, do you think its here for the long term or short term. i know alot of people who invested recently almost all of them only jumped in for quick profits once they see its going down panic will trigger. i just dont know what % are those and what are corporations. A bad news is also due anytime which can shake even the long term investers.
I don't really see but yeah there will be some FUD , doesn't matter if your a long term investor though they tend to be smart enough to see past the FUD and look at the fundamentals .
Technical analysis is great, I appreciate the work people have put towards the trending data. The thing is in my opinion, the data in this case is less important than the overall story in this crazy dynamic we have currently going on. Bitcoin is much more of a curiosity play and a conviction play to many that are now jumping off the sidelines. There is good and bad to that, the good for pro Bitcoiners is that there are a lot of people who like making money and they really don't care how they make it. The bad new is that this has had no institutional input on its way up and now that it does, any financial resource that has gone straight up has a giant bulls eye as far as short sellers are concerned. I am VERY BULLISH when it comes to Bitcoin in the longer term I just think it is going to take a bit of a thrashing in the short. Thanks again for the high quality post and response, it's greatly appreciated.
Cheers bud , Yeah it got overextended really quick really fast.I think this will be a very healthy correction almost 30- 40 % down from the highs which is good in the long run .I am bullish on BTC long term as weIl looking forward to 2018, it's always better to buy on the way down and in batches rather than buying all together .
This was very helpful thanks a lot!
Cheers bud
Anytime!
im thinking buying opertunity.
:D
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