My Thoughts on BTC, with Analysis.

in analysis •  7 years ago  (edited)

My BTC Analysis

I've noticed a few things in the BTC/USD(bitstamp) charts I thought you guys might appreciate. Don't wanna waste time so, I'll get right into it!



4-Day Candles

Big Picture

I always like to first zoom out to get a good look at what's goin on overall. Here I noticed the bottoms, since the big run towards $20k, have been following the previous healthy climb. (Bottom purple line) This is a good sign the overall uptrend is still solid and intact. I also drew a descending line for the tops of the bumps. The consolidation of this triangle is coming to a point, which tells me we should have a breakout/new trend formation in the coming weeks.



1-Day Candles

More Details

Here I added a rough fib of the climb to $20k. I also added a few red resistance lines for spots the market seems to have, in the past, found resistance/support. You can see they are pretty close to lining up with the fib levels, which supports their importance.



My Overall Opinion

I see BTC as being quite healthy. It's still moving positive. Yes it has fallen, but that is natural and to be expected after a run like it had. It also has held strong above the overall up-trend-line(bottom purple). I see $9.3k-$9.5k(lower red horizontal) to be our first resistance level, followed by ≈$11.5k(upper red horizontal). If the main(bottom purple) trend line holds, our support for the next days/weeks should be in the $7.75k-$8k range.



UPDATE 3/27/18

We are currently sitting in the main support range($7.75k-$8k) and it's holding for now. This is a time to watch closely, as a break below would signal a continued downtrend. If she holds(I'm thinkin she will) we can expect growth back towards $9k+

UPDATE 3/29/18

BTC has fallen below the trendline, I like to wait for a candle to complete before making decisions but this move shows an increased likelyhood of another dip towards $6k, yeah its looking like I was wrong in my 3/27/18 update, but, like I said, complete candles tell a better story.

Disclaimer:

This all my opinion. I'm no financial advisor and take no responsibility for your trades. Do you own research/analysis before investing/divesting. And always remember to zoom out here and there, you might see a different picture.

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