Recent market action has been unpredictable, and it is becoming increasingly volatile. More frequent periods of apparent calm, horizontal price action culminate in short sharp price spikes. The condition reminds of the quote by George Soros: "Volatility is greatest at turning points, diminishing as a…
Recent market action has been unpredictable, and it is becoming increasingly volatile. More frequent periods of apparent calm, horizontal price action culminate in short sharp price spikes. The condition reminds of the quote by George Soros: “Volatility is greatest at turning points, diminishing as a new trend becomes established.”
From the analysis pages of xbt.social, earlier today:
The recent uptick in volatility is not much when compared to what has been witnessed in the Bitcoin chart in the past. Relative to the miniscule price waves we’ve seen during the past two months, a $10 move is strong stuff, and in a corrective/consolidative market phase it results in the chaotic price action we are experiencing. The market is in flux – changing from downtrend to uptrend.
We have to remain patient until this phase passes. It may take weeks. A tactic for dealing with current price action may be to adapt our method since our (xbt.social) trading method is good for trending and breaking price moves. But then, what method is there for changeable and unpredictable price action? A look at the US Dollar Index, over the weekend, will shed some light.
No change in the top three positions as Fijibound stays in cash, and Diabolicus and bitmaster30 hold full trade positions.
Camille has an interesting balance of BTC and USD in his cash position – wonder if that’s an oversight or intentional? There is, of course, no magic mix of the two and straight-up, unleveraged bitcoin traders flip between the two as a matter of course.
Whatever transpires next in the Bitcoin price chart next, is going to rearrange the leaderboard. Good luck to the competitors and all traders with the coming market phase.
You can pretend to be serious; you can’t pretend to be witty. – Sasha Giutry
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For now, based on our analysis, we expect choppy price waves to continue winding tighter. We can see a structure in the chart that seems to be setting up for a move. We have a stop loss (known risk) in place, and we proceed according to our view that a larger market consolidation is in progress.
Bitfinex order book depth and Buy/Sell volume is even-keeled:
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 11:06 PM UTC