Hello dear friends! I hope you are doing well. I've been laying sick in my bed for most of the week, so you haven't seen much TA from me lately. I'm starting to get back on my feet again, so let's kick off with a dual chart on Bitcoin / US dollar.
This Bitcoin chart is all about perspective.
The chart on the right is using the linear price scale, to which most of us default in our daily trading. The chart on the left is using the log, short for logarithmic, scale. For those who might be unfamiliar with the log scale, here is the definition from Investopedia: A type of scale used on a chart that is plotted in such a way that two equivalent percent changes are represented by the same vertical distance on the scale, regardless of what the price of the asset is when the change occurs.
Some of us might be saddened or pessimistic about Bitcoin / the cryptocurrency market right now. This is very understandable, especially if we look at the lineair price scale. Bitcoin went down to $5,800 in February, coming from nearly $20,000 in December. Right now, shorter term, the market is bearish and Bitcoin's volatility is dominating trends of alt coins. However if we zoom out and look at the bigger picture it seems less wrecked as it might appear.
In November / December 2017, Bitcoin rocketed to the moon, hype and fomo fueled rocket engines make it break orbit from the yellow channel on the log scale chart, but... it couldn't escape its gravity and when the hype fuel burned up it got pulled right back in to the channel. We could and should probably call it a crash, also considering how it influenced the market as a whole, but it still acts within the yellow ascending channel, while it could also have crashed through that bottom by now if the market would have crashed beyond repair or hope for salvation.
This chart is for reflection purposes, I hope it might help those of you in need for fresh perspective. I will soon post an updated zoomed in BTC chart with my short term price expectations.
Personally I only enter trades after I witness a break confirmation. My analysis is not financial advice: you should never invest solely upon reading my or another persons TA and do your own research: explore news, social media, tech info and so on. Monitor your investment and set alerts and stop loss orders in place.
If you like my charts an upvote/like is much appreciated.
Happy Trading! ~ CryptoJC
This Bitcoin chart is all about perspective.
The chart on the right is using the linear price scale, to which most of us default in our daily trading. The chart on the left is using the log, short for logarithmic, scale. For those who might be unfamiliar with the log scale, here is the definition from Investopedia: A type of scale used on a chart that is plotted in such a way that two equivalent percent changes are represented by the same vertical distance on the scale, regardless of what the price of the asset is when the change occurs.
Some of us might be saddened or pessimistic about Bitcoin / the cryptocurrency market right now. This is very understandable, especially if we look at the lineair price scale. Bitcoin went down to $5,800 in February, coming from nearly $20,000 in December. Right now, shorter term, the market is bearish and Bitcoin's volatility is dominating trends of alt coins. However if we zoom out and look at the bigger picture it seems less wrecked as it might appear.
In November / December 2017, Bitcoin rocketed to the moon, hype and fomo fueled rocket engines make it break orbit from the yellow channel on the log scale chart, but... it couldn't escape its gravity and when the hype fuel burned up it got pulled right back in to the channel. We could and should probably call it a crash, also considering how it influenced the market as a whole, but it still acts within the yellow ascending channel, while it could also have crashed through that bottom by now if the market would have crashed beyond repair or hope for salvation.
This chart is for reflection purposes, I hope it might help those of you in need for fresh perspective. I will soon post an updated zoomed in BTC chart with my short term price expectations.
Personally I only enter trades after I witness a break confirmation. My analysis is not financial advice: you should never invest solely upon reading my or another persons TA and do your own research: explore news, social media, tech info and so on. Monitor your investment and set alerts and stop loss orders in place.
If you like my charts an upvote/like is much appreciated.
Happy Trading! ~ CryptoJC
Comment:
I have posted a new Bitcoin USD chart today with trend lines and upcoming support and resistance lines to monitor. Read my full analysis by clicking the chart:
Comment:
Wow, Bitcoin bounced up exactly at the channel bottom of my logarithmic chart I posted two days ago. Here is a screen shot from right now (without moving any of the lines from my log chart post):
