Many are saying BTC has reached bottom. I disagree. #BTCUSD reached 3.25 deviations from the 253 average back in June 26th of this year when price reached $13,016. An instrument can naturally deviates (+1) & (-1) deviations from the mean. Whenever such levels are crossed, a bullish or bearish trend is in place until the instrument has reached +3 or -3 deviations from the mean at which level there is 99.86% Confidence of a price reversal, statistically speaking.
At this moment price has reached -2 deviations from all major averages except the 253 or yearly average which is currently at -0.68 deviations based on the last pane of my chart. It would be at least natural for BTC to keep moving further down and find serious support at -1 deviations from the 253 average at which price would be $6,311.
If such level is broken BTC would easily travel down to -1.64 deviations at a price of $4,910 where the confidence for reversal seats at 90% .
My recommendations, if you want to play safe, would be to wait until price crosses above the 50 day average, currently at $8500 before entering a LONG position.
Feel free to add my newly added indicator Z-MA which will help you keep track of how many deviations from an average price has reached and be able to trade reversals as well as enter trends at the most appropriate price level. This indicator is free for the time being so enjoy it while you can
@FX_Baba
At this moment price has reached -2 deviations from all major averages except the 253 or yearly average which is currently at -0.68 deviations based on the last pane of my chart. It would be at least natural for BTC to keep moving further down and find serious support at -1 deviations from the 253 average at which price would be $6,311.
If such level is broken BTC would easily travel down to -1.64 deviations at a price of $4,910 where the confidence for reversal seats at 90% .
My recommendations, if you want to play safe, would be to wait until price crosses above the 50 day average, currently at $8500 before entering a LONG position.
Feel free to add my newly added indicator Z-MA which will help you keep track of how many deviations from an average price has reached and be able to trade reversals as well as enter trends at the most appropriate price level. This indicator is free for the time being so enjoy it while you can
@FX_Baba