Bitcoin price was showing signs of topping since yesterday and after a strong push to 3100 CNY and $480 (Bitstamp) price plummeted $100 in some exchanges before recovering during the day.
Time of analysis: 11h30 UTC
From the analysis pages of xbt.social, earlier today:
The analysis below was already written by the time I post this and the price correction has begun. Price has triggered both our xbt.social dynamic stop-losses and the trade is closed after raking in large profits on this last move.
Analysis written a few minutes prior to 04h00 UTC:
Price has gone parabolic and the indicators are maxed out. The advance is approaching the levels of the November top.
Unfortunately, if you’re not in position already, there is no safe way to join the trend. The compulsion to join is overpowering, but by the law of the market – as soon as you do get in – price is likely to reverse.
The only way of riding these runaway price waves is by having gotten in safely at its start and by having a dynamic stop-loss in place. Either a 15min or 1hr dynamic stop-loss would have kept the trader in this trade since its entry signal as identified in xbt.social analysis on Wednesday.
Analysis at 11h30 UTC:
The bulk of the past day’s move had happened on declining volume – the majority of buyers having gotten in much lower – and a lot having joined trend on the bump higher on the 9th and 10th of December. They were bound to take profit at some time, and the moment came at the confluence of the 5,618 Fib extension level, a long-term Fib line (from January) and the CNY exchanges reaching their psychologically significant 3000 CNY level.
So soon after the onset of a major correction there is just too much risk in positioning in the market. The fact is compounded by the Fed’s rates announcement on Wednesday that is likely to jump start markets into new trends for 2016. Will the Fed definitely raise rates as per the market’s consensus? Probably, but not without a twist.
What do readers think? Please comment below.
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The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
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Last modified (UTC): December 12, 2015 19:38