Bitcoin trading is running a sideways consolidation prior to a move higher. Today trade opted for a sell-off that did not achieve great depth of decline. The overall sense is that a base is forming prior to a move to $275 / 1700 CNY. This…
Bitcoin trading is running a sideways consolidation prior to a move higher. Today trade opted for a sell-off that did not achieve great depth of decline. The overall sense is that a base is forming prior to a move to $275 / 1700 CNY.
From the analysis pages of xbt.social, earlier today:
How long this consolidation will continue is unknown. Price may start advancing within the hour, or it may drop lower and then resume consolidation. MACD is contracting, and RSI and the stochastics are neutral, although rising.
The matter of yesterday’s sell Trade Recommendation remains unresolved. It was put to status “Open” and then a move down never transpired. Strictly, price did not break to the downside, which was a condition for opening the position, but a few traders may have opened regardless and will now have a position in loss a few dollars above the suggested entry price at $260 (Bitfinex), $255 (BTC-e) and 1610 CNY (BTC-China). Traders in this dilemma may want to wait to see if price will draw lower today. The risk of waiting is that advance may set in and rapidly escalate your losses. Of course, any losses up to your stop loss will quickly be recouped in the move to the upside and the primary objective should now be to minimize losses, as opposed to Hoping for more downside.
Taking a loss is never easy but it is the duty of the trader to protect what they have. Entering the market is, in itself, a very risking undertaking and letting a position run against you is not financially or psychologically healthy. Losing positions should be closed with the same determination required by any unpleasant task, such as when one needs to kill a suffering animal. In low volatility, it is more difficult because it always seems like returning to breakeven only requires the trader to wait. However, it is best to nip such bad habits in the bud. When Bitcoin volatility picks up, it is not unusual to see price swings of $50 and more within minutes.
Bitcoin price is unfolding a larger base structure from which advance to $275 and 1700 CNY will push to the upside. Today’s move down is only a subwave of the larger structure. The current move up may resume sideways price action above the previous consolidation level of $260 and 1610 before a break to the upside occurs.
Bitfinex 1hr/24hr Buy/Sell Volume:
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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 3, 2020 3:31 PM UTC