A longer-term view of the Bitcoin price chart shows that the moving averages are more closely compressed – and aligned – than they have been in over a year. Price action has narrowed in range and is tending toward $240 and 1480 CNY. This analysis…
A longer-term view of the Bitcoin price chart shows that the moving averages are more closely compressed – and aligned – than they have been in over a year. Price action has narrowed in range and is tending toward $240 and 1480 CNY.
From the analysis pages of xbt.social, earlier today:
Failing to prepare, in the simplest view, is like preparing to fail. We need to prepare for a disaster scenario whereby the market makes a last gasp sell-off here at the cross-over of decline into advance. Analysis has consistently painted this outcome as highly unlikely, but even a 1% chance of this happening spells disaster for our bullish outlook and positioning. Several xbt.social members have presented analysis that pointed out the possibility of a return to the support floor at $212 (Bitfinex) and 1300 CNY (BTC-China).
The chart above highlights price patterns similar to the larger wave pattern since January of this year. The pattern since January can be interpreted as a longer, drawn-out expression of those same corrective patterns that had preceded a sell-off in one case, and an advancing surge, in the other. Not shown, but certainly printed in our memories, is the Silk Road bust sell-off of October 2013, just prior to the rally to above $1000.
There are two common strategies for dealing with this dilemma:
1) Delay opening a position until a certain grouping of technical evidence confirms advance.
2) Take position early and prepare an equal and opposite hedging position.
Let’s explore the two options and how to best use them. [Content available in today’s xbt.social analysis report.]
While we await a market move, readers are gladly informed about some positive changes:
Reader and CoinCompetition participant feedback is welcome.
Be aggressive in a trending market and conservative in a choppy market. – Vadym Graifer
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The Bitcoin price moving averages alignment is suited to neither advance nor decline in both the 4-hour and 1-day timeframes. The expectation is therefore that this condition will continue until price, and the MAs (moving averages) form a virtual flatline prior to advance. The advance may be sudden or gradual, and traders should take precautions against an opportunistic sell-off targeting the support floor near $212 and 1300 CNY prior to the much-anticipated rally. xbt.social explored two common strategies for protecting your account balance and existing positions.
Bitfinex Buy/Sell Volume was balanced for the past day but, during the hour prior to the time of writing, buying went full tilt:
What do readers think? Please comment below.
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The writer trades Bitcoin. Trade and Investment is risky. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Last modified: January 25, 2020 11:05 PM UTC