It’s Been a Thrilling Day for Bitcoin Traders

Journalist:
November 9, 2016

Well, it turns out that today was an exciting day for day traders of Bitcoin.  We have not, as of this writing, gotten a close above 750 that would demonstrate a higher high and signal a resumption of the rally of recent weeks.  However, for short-term traders we did get a close on the 2-hour chart that broke through the 1×1 angle; indeed, the rally went all the way to the 8×1 angle.  Here is that 2-hour chart:

To those who caught that rally, I offer my congrats.  It was surely a good trade.

Now I’m going to say something I know will upset a few bulls out there:  “I would not buy here.”  If there is a close just a bit higher, above 750, I would buy it there.  IMHO to buy here is chasing a rally that is most likely already spent.  For Elliott Wave traders, there is no discernible way (that I can see) to label this rally from the low a “5”. All I see are “3”s.

If there is a rally another 12 points higher, with a close above $750, I will miss that $12.  I can live with that – $12 is not that much in the larger scheme of things.   Personally, I would much rather miss out on $12 than buy what I suspect is a swing high.

Ethereum

Ethereum dropped a bit to seek support which it found at the 2nd arc.  This was the second successful test of that arc.  It rebounded to get back above the 1×1 Gann angle.

This was not quite what I was expecting, but despite the short term frenzy, no damage was done to the chart.   A green candle here, should it appear, would be bullish, IMHO.  On the other hand, a close below the 1×1, and/or that arc, would be bearish.

By the way, I noticed something interesting on the Bitcoin 2-hour chart.  Note that the blue vertical lines are spaced 30 degrees of earth rotation apart.   For the past several cycles, there has been a big spike, up or down, at that time.

Not sure that this is “trade-able”, but it’s one of those Gann-isms that makes one say:  “hhmmm….”

Happy trading!

Remember:  The author is a trader who is subject to all manner of error in judgement.  Do your own research, and be prepared to take full responsibility for your own trades.

Featured image from Shutterstock.

Tags: Bitcoin
Jim Fredrickson @jimfred1276

Jim has an MBA from the University of Southern California. He has been trading commodities, forex and bitcoin since 1993. You may email him directly at: jimfred1276 at gmail dot com. Feel free to follow him on twitter.