By running a Stochastic through Inphase-Quadrature frequency transform and smoothing it with ZLSMA (Zero Lag Least Squares Moving Average) we can get a good picture of the current position of Bitcoin. It appears BTC has nearly finished consolidating its low point and should be bouncing up in to a bull trend. The chart above and below is using macZLSMA from multiple timeframes including monthly, 2 weekly, weekly, daily and 12 hourly. ZLSMA is an excellent tool to find early trend directions/pivots. It does look like bitcoin is making its comeback but we can not forget that BTC is in a heavy down trend and the road out is a rough one full of pumps and dumps.
One thing is certain and that is the institutions will be dumping on bitcoin soon as there is any public momentum to get on board. Institutions have been having a field day scooping up the positions from traders with excessive leverage and short stop-losses which in turn pushes the price down harder.
To get around this margin traders can easily find tops and bottoms on longer timeframes such as the 2 hour and ride them with 10x leverage for 8-12 hours. A strategy like this means traders can trade both directions with the trend (short and long) regardless of what the institutions are doing.
Be prepared for lots of dumps in the future and don't forget to take profits along the way. Using an oscillator such as a Stochastic RSI on the 3 hour chart traders can see dumps coming, exit their longs and enter a short, betting with the institutions snatching up the positions they were hunting.
Happy Trading.
Happy Trading.
Comment:
Just a caution to any traders entering longs, Institutions are shorting BTC every chance they can get. Looks like BTC will still go down before it goes back up. Here is a volume analysis chart that clearly shows the pattern.
Comment:
Here is the latest in macZLSMA trend...