First Post - Introduction and A Quick Look at Bitcoin Chart

I have another blog but this Bitcoin update I decided to post on Steemit as an introduction. I'm new here and looking forward to contributing to this growing community. I guess a formal introduction can wait, though not too long, since I have enjoyed reading other personal introduction posts on here. Frankly, you get a sense of all those different walks of life people come from. Amazing!

Anyway, what is happening to Bitcoin? From a technical perspective, my peers at TradingView think it is a boring market. Well, for some people, volatility makes exciting trades, and many are waiting for a bull rally. But this indeed is a very cautious, uneventful market. Will it stay so for long? I am not in the business of making long term price projections, I like to look at things as they develop. But in this case I am positioning for short term trades (a few days, max a couple weeks).

Before I bore you with more words, let me cut to the chase and give you my take on the daily chart and also mention what other traders I follow expect to happen here. And I am going to keep it very simple and short.

First, take a look at the daily chart. I removed all technical drawings and just left the cables and volume.

So, if there is a question on your mind about whether this price ($7,600) is a good entry point, you should look for a few things to arrive at the answer. And again, you might add your own considerations and I would love to hear them! Notice, I am not going to tell you if you should buy or sell at $7,600, what I am going to do is lay out what we need to look for to spot the next lift off or meltdown, to that matter.

1. We are trading way below 200MA and below 50MA. The 50MA cable is sloping downwards as we speak indicating further negative direction.
2. We have been trading sideways (in a zig-zag pattern) for the past several days. This trading pattern emerged from the recent bounce-off of the $7,026 low. But the volume wasn't really impressive when that bounce took place. But still it was enough to drag it up 600 points.
3. The volume is actually a good indicator to see where things are headed. Take a look at the last two volume bars. The last bar is still developing and may turn out bigger or turn green by the end of the day. If I see three red bars, each one followed by a taller than the previous one, it tells me that we are building up selling pressure. On the other hand, if there are three green bars stacked up in this fashion, it is a signal of accumulating buying pressure. So, I will position my trade accordingly.

So, based on just these there considerations, you can see that the market isn't yet showing clear signs of another mini bull run. The picutre is developing though. Also, here might enter the pumps. I think it is no news to anyone in the crypto world that Bitcoin is subject to some price manipulation.

Take, for instance, the pump that occurred on Saturday, April, the 12th. That action propelled Bitcoin back to the 200MA that acted as a resistance. It actually holds a tight lid on Bitcoin's future price growth. Can another pump like that one happen today or on Sunday? Why not? But unlikely, at this point. Once it tried to climb to the 200MA three times and was pushed down, the chances become smaller.

Now, let's take a quick look at 1-hour chart.

We had some cool "Bart Simpson head" patterns on this chart. But notice, how the price is now camping under the 200 MA, and the cables again are positioned for another move down. The 50MA is positioned to go through the 200MA in a death cross. We also actually had that three red volume bar combination earlier on the 9th. Therefore, bullish signals are clearly lacking at this point.

As I was writing this post, surely Bitcoin shaved off more than a $300 in a quick plunge. The ideas that I wanted to illustrate, however, are worth mastering. And of course, there are many more indicators we may add to this discussion but my goal for now was to illustrate the timing and trading opportunities that arise out of technical formations, and more generally, making more informed buying decisions for medium to long term investors who buy the dips.

Now, let me briefly talk about a couple analysts that stand out on TradingView - both present short to medium term outlooks that I really appreciate.

The first guy goes by the moniker MagicPoopCannon. You can read his latest Bitcoin analysis which is spot on and his charts are of awesome quality. The second fellow is goldbug1. He takes a longer term perspective but also has great technical analysis skills. I follow a few more people on there.

I hope you enjoyed my first post. Comment. Follow.

Peace,
Paul