Why This Chart Looks Like A 4 Year Old Made It... Bitcoin!
Some people who trade BTC love to call the bottom - other people really get off on calling the tops. Personally - I don't care which way it goes as long as I am on the right side of the trade!
The weekend is usually a confusing time - I have seen guys that only chart Monday to Friday for this reason. I kept watch this whole weekend however - waiting for a pattern to play out that hasn't wanted to pop yet. Thats why my chart is looking like dogs breakfast. We've been moving sideways the whole weekend which was unexpected - I expected more upward or downward movement. The market seems confused and we are reaching one of those points where it needs to make a decision one way or another in order to accurately predict what happens next.
Why are we still sitting at the same levels we've been seeing for days?
The volume dropped - and there doesn't seem to be enough momentum to get us out of the current pattern to $7200. On my chart you can see that the candles are following the down channel line with very little intention of breaking through it. There are so many lines and shapes that my chart is beginning to look like a kindergarten project. Sometimes everything lines up and all of these shapes and lines play out - other times it takes a little longer for things to play out and the shapes seem out of place (which is what we are looking at now).
So what does this mean?
In the short term this likely means that we will see the price drop short and sharp. I can see anywhere between 6300 and 6000 making sense.
If we dont bottom out (which is possible as well) - we break through the down channel and we start testing the resistance.
I hate giving two scenarios because I think analysts should stand by their analysis. My call is this: If you don't have BTC and you have money "earmarked" for it - we likely are not going to see a better time to buy. In the next day or two we will either double bottom (which will cause a reversal) or we will break through the down channel because of a spike. Either way - the sky is not falling - we are headed to test the 7200 mark - we just might take a few detours on the way.
I love reading the news stories during times like this - they have gotten more laughable as Bitcoin has become popular. There are a lot of useless "overvalued" Alt coins that give the industry a bad name. Bitcoin however is not going anywhere.
There is between 2.5 and 3 billion in Tether - so we can infer at least this much USD is waiting on the sidelines for BTC - which would be more than enough to cause the price to appreciate.
The best way to play Bitcoin is to keep buying positions at these levels (depending on your money management system). There is definitely short term downside - but the longer term upside is significantly higher.
If you want to gain more Bitcoin and don't mind some risk - take small positions in the top Alt coins like LTC or XRP - when Bitcoin recovers, the Alt's should recover in similar pattern and you should end up with not only a higher USD value but more Bitcoin!
**I'm A Full-Time Trader - I Gain Nothing By Providing Analysis. Please Like or Follow To Let Me Know You Want More Content Like This.**
The weekend is usually a confusing time - I have seen guys that only chart Monday to Friday for this reason. I kept watch this whole weekend however - waiting for a pattern to play out that hasn't wanted to pop yet. Thats why my chart is looking like dogs breakfast. We've been moving sideways the whole weekend which was unexpected - I expected more upward or downward movement. The market seems confused and we are reaching one of those points where it needs to make a decision one way or another in order to accurately predict what happens next.
Why are we still sitting at the same levels we've been seeing for days?
The volume dropped - and there doesn't seem to be enough momentum to get us out of the current pattern to $7200. On my chart you can see that the candles are following the down channel line with very little intention of breaking through it. There are so many lines and shapes that my chart is beginning to look like a kindergarten project. Sometimes everything lines up and all of these shapes and lines play out - other times it takes a little longer for things to play out and the shapes seem out of place (which is what we are looking at now).
So what does this mean?
In the short term this likely means that we will see the price drop short and sharp. I can see anywhere between 6300 and 6000 making sense.
If we dont bottom out (which is possible as well) - we break through the down channel and we start testing the resistance.
I hate giving two scenarios because I think analysts should stand by their analysis. My call is this: If you don't have BTC and you have money "earmarked" for it - we likely are not going to see a better time to buy. In the next day or two we will either double bottom (which will cause a reversal) or we will break through the down channel because of a spike. Either way - the sky is not falling - we are headed to test the 7200 mark - we just might take a few detours on the way.
I love reading the news stories during times like this - they have gotten more laughable as Bitcoin has become popular. There are a lot of useless "overvalued" Alt coins that give the industry a bad name. Bitcoin however is not going anywhere.
There is between 2.5 and 3 billion in Tether - so we can infer at least this much USD is waiting on the sidelines for BTC - which would be more than enough to cause the price to appreciate.
The best way to play Bitcoin is to keep buying positions at these levels (depending on your money management system). There is definitely short term downside - but the longer term upside is significantly higher.
If you want to gain more Bitcoin and don't mind some risk - take small positions in the top Alt coins like LTC or XRP - when Bitcoin recovers, the Alt's should recover in similar pattern and you should end up with not only a higher USD value but more Bitcoin!
**I'm A Full-Time Trader - I Gain Nothing By Providing Analysis. Please Like or Follow To Let Me Know You Want More Content Like This.**
Comment:
Looks like we got the big spike weve been waiting for.. First stop 6800 then 7200.