Bitcoin is flashing a major buy signal also seen at the $3,100 bottom
With Bitcoin falling some 10% in the last two days, sentiment has turned decidedly bearish.
The drop is most likely being caused by our friends in China unloaded their PlusToken ill-gotten gains.
More on that can be seen here:
https://steemit.com/bitcoin/@jrcornel/btc-curious-what-s-causing-the-recent-price-drop
Regardless of the cause, the price has been dropping and it hasn't been much fun.
However, it might not be all bad out there...
According to Thomas Thornton, a hedge fund services specialist and market analyst, bitcoin is doing something it has done several times in the past.
Most notably at major inflection points.
It's flashing a "buy 13" on the TD Sequential Combo indicator:
(Source: https://twitter.com/TommyThornton/status/1206955441911214080)
I won't fully go into exactly what that means here, but if you want to learn more about the trading pattern, check this out:
The most important thing for you to know is that this pattern has shown up a couple times on bitcoin over the past few years, and many have been at major inflection points.
Does it work?
Like anything in life, it's not 100%, but it did show up at each major inflection point over the past few years:
- We had a "sell 13" when bitcoin hit $20k in Dec. 2017
- We had a "buy 13" when bitcoin hit $3,100 in Dec. 2018
- We had a "sell 13" when bitcoin hit $14k in June of 2019
- We have a "buy 13" on bitcoin at $6,600 right now
What does this all mean?
To me, it clearly shows there is some historical importance for this 13 Sequential Combo Indicator and one that we should probably be paying attention to.
It's flashing "buy" again right now, which probably means now is the time to be buying.
I would not be surprised if this ends up being the low and we start a very strong bullish reversal somewhere around these levels.
Stay informed my friends.
-Doc
I think we will go lower - you need to be ready to buy below 5
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I actually think this is the bottom. I bought a bit more. :)
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Quite a lot of bearish sentiments with BTC, and some of the major indicators like the MACD and EMA are showing bearish signals. Still, I think the bears are getting exhausted by now, and some long-term signals are flashing "buy" right around this price point. I believe we may have hit near bottom, with a possibility of BTC dropping further to low-$6,000 levels, if the bears keep selling, especially those PlusToken scammers.
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Yep, I think so as well. I think it's very possible this is the bottom right now, around $6,500 area... I am using this time right here to add some.
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Agreed. And its good that you've added some more Bitcoins, since it's rebounded back sharply to $7,200. So you've already profited ~10%+ since then :-)
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Yep, unfortunately I need a lot more than that before my stack is green. I averaged in quite a bit around the $10k number after we pulled back from $14k.
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Ah, same here. I started averaging in around $10,000, and then again at around $7,500. I'm still in the red, but I'm looking forwards to the long-term growth.
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I decided a cost average around $4k wasn't good enough... so I decided to pull it all the up to $10k by buying the majority of it up there and above.
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Ah, that's interesting. I think the both of us can only do and wait for the markets to keep growing, which it will do in time :-)
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You must be smiling now?
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With today's (Wednesday) price action, it looks as if enough of the right people got the memo.
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Yep. I think that was the low (cautiously knocks on wood).
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Sort of feels right. Loved that mostly "V" shape on the charts. Onward to $7400!
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Hi Armadilloman, You and Jrcornel are the happy ones now. I still think we are going lower then $6500 before the halving, probably April fools day to f with us all. ;)
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Yep, bottoms and tops are often V shaped, they don't give you much time to buy the bottom or sell the top.
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Hi jrcornel, You and armadilloman must be smiling now? hmmm ;)
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It's starting to turn into one yes, though a break above $14k and I would be pretty happy as that would all be guarantee a run back at the all time highs. Once that levels breaks there will literally be no bear case to be made based on the charts, none.
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I see BTC going down to $6K range before a new all time high. I am super bullish on ETH going to $10k before 2020 is over.
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