Bitcoin Technical Analysis: My 5 reasons why I bought Bitcoin today

penguinpablo (75) in bitcoin • 7 years ago

Here's why I've bought more Bitcoin today.

1. FUD (Fear, Uncertainty, and Doubt)

I actually never trade on news events. People are selling in fear right now because China may ban Bitcoin exchanges. I usually do the opposite as the herd. If everyone is selling I'm buying. I don't really care if the rumors are true or not. Even if China bans Bitcoin exchanges, Bitcoin is still an amazing alternative to the failing fiat money system. I see Bitcoin as Gold 2.0, a safe haven when fiat currencies fail due to inflation caused by insane money printing. The FUD from China is a buy opportunity to be thankful for in my opinion. Although I could be wrong of course. Time will tell... :)

Let's have a look at the Bitcoin chart (Bitstamp daily)

2. RSI

The RSI has fallen below the 30 level today which indicates Bitcoin is oversold. The last time this happened was on July 16 when Bitcoin made a low of $1830. The price more than doubled hereafter.

3. Bollinger Bands

Look how far the price is trading below the lower Bollinger Band. The current price is $3090 while the lower Band is at $3412. It never means we can't go lower, but historically the price has always moved back inside the 2 bands.

4. $3000 is a resistance level

I think $3000 USD is a physical resistance level. It was a top on June 11 and July 20 before it was broken on August 5.

5. 61.8% Fibonacci Retracement level at $3041

Bitcoin is currently trading around the 61.8% Fibonacci Retracement level between the low of July 16th and the top of September 2nd.

I think $3000 is a key level to keep an eye on. The "perfect buy" in my opinion :)

Disclaimer: No trading advice. I just gave you my reasons why I've bought...

_{¯\___(ツ)____/¯ Don't miss out on my next post! Follow me @penguinpablo}

bitcoin cryptocurrency news crypto trading

7 years ago by penguinpablo (75)

$31.26

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igster (63) · 7 years ago

https://steemit.com/trading/@igster/for-those-new-to-crypto-welcome-to-bear-market-and-some-resources-to-cope-with-it

My view on the market.

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2 votes

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steem77 (59) · 7 years ago

is my post : https://steemit.com/promo-steem/@steem77/impact-of-the-3rd-largest-bitcoin-exchange-in-china-on-the-promotion-of-steemit-in-aceh

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michiel (68) · 7 years ago

Finally some common sense online. I see panic everywhere, but I think the drop in price is at 3000 already bigger than it should be seen the fundamentals. I think it is because recently many new investors came in and are not used to the volatility of BTC.

I think even if they shut down the exchanges, the loss in value is already priced in around this price. Finally Chinese people will find a way around and beside that Bitcoin is a global currency and taking off in many other parts of the world.

Also good news like a big Japanese company start bitcoin mining on big scale with more efficient chips seems not to be seen by the panicking crowd.

I have no money at the sideline to invest, because im heavily in already. If I had I should start accumulate cheap coins now. The only thing I will do is HODL!

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2 votes

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clumsysilverdad (64) · 7 years ago

Plenty of FUD going around as the dark side looks to crush the rebellion!

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1 vote

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colinbrazendale (66) · 7 years ago

Very good reasons. I also bought today, but nothing stops the price going back to $2700 in the next 2 weeks. RSI and Bollinger bands can change in the next 2 weeks.

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2 votes

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cendana287 (40) · 7 years ago

I'm buying a bit at the current level. But I'm with you on that one - I think the one-time highest level of $2,800-ish from last June is the support. But we will know soon enough.

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conchita (48) · 7 years ago

Thanks for the Analisys!

I agree, I am buying now, in the worst case I made average with the other invest cost in the past and in the future.

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1 vote

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cendana287 (40) · 7 years ago

"Averaging the price" - I'm following this strategy too. Never use all of one's capital at any one time. There must be some at the sidelines. To be used for moments like this.

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1 vote

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zyrawr (53) · 7 years ago

Averaging is very effective. :) I'm using this strategy too.

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rogerblu (49) · 7 years ago (edited)

Bitcoin is resilient and even if it goes below the $3000 resistance level i have a good feeling it is going to surprise a lot of naysayers when it hit $10 000 before 2018. Bitcoins has proven many critics wrong over the years and i bet it will do it again not to mention the many times it was said that it will die or crash. If bitcoin was a woman man she would be more beautiful than any super model out there.
@rogerblu

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1 vote

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pfa (61) · 7 years ago

so true

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4 votes

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taskmaster4450 (78) · 7 years ago

It is a great buying opportunity...I picked up a batch at $3400 and will do so in this range.

Have a bit more powder ready to get in if we pull back to $2500.

The only thing the news is good for is to show the mentality of the public. As you mentioned fear is in the air.

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1 vote

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bigsilver (53) · 7 years ago

Time to buy for sure! Even if it goes lower from here.

FYI... Upvoting replies to your posts, really helps the person replying (and you) so if you would upvote this reply - Thank you. :)

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1 vote

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crypto-genius (43) · 7 years ago

that's a bad idea to buy bitcoins today... I would suggest to buy them at 2000$ because by october end they will go down to the floor. you should be aware about the Pre-Order Mining contracts at Genesis mining (will be start from 31st Oct-2017) sold out in 2 days... millions of dollars they have made on it when the price was 4600$ of bitcoins... their contracts of bitcoins remain till they are profitable, difficulty, electricity charges & maintenance fee will increase in October , hence the contracts on lower hashes will be automatically canceled. therefore 40% contracts will remain in loss. Genesis mining will soon reduce price on contracts of Ether & Monero as they're still available & in not much demand. Count my words ! Cheers !

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1 vote

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libert (63) · 7 years ago

It's still gonna go more down I guess and so does steem, yeah!

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ghufranreza (47) · 7 years ago

Thanks for shering information

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steemitromney (53) · 7 years ago

Yoo @penguinpablo Nice post, tho you may be a bit early. According to the graphs you used from a TA perspective I'd say BTC should bottom around $2500 as $3000 is weak

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santigs (51) · 7 years ago

Bunch of indicators pointing into the same direction.
Time to buy :)

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pfa (61) · 7 years ago

good to know, thanks

$1.18

4 votes

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reelly (34) · 7 years ago

I pray china should not ban btc trade..i like to trade with china

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sadekj (58) · 7 years ago

Thanks @penguinpablo.

I think I will buy some BTC now :)

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greenrun (66) · 7 years ago

I bought too.

Be Fearful When Others Are Greedy and Greedy When Others Are Fearful
.. Warren Buffett

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cryptoleen (44) · 7 years ago

Thanks for your very good analysis! Maybe you're right. We'll see!

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cendana287 (40) · 7 years ago

Good post here with the writer making an effort to present his thoughts in a clear manner. As for the points here - I sure hope you are right :) It's been a gloomy week for crypto investors. The past 3 days especially.

$3,000 sure looks like strong support, especially with the "round number" psychology (which is definitely a factor too). But I'm putting it at $2,850 or so - that was the high from last June, followed by a correction. This point was broken in August. I think this is very solid support.

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buzzbeergeek (73) · 7 years ago

Awesome analysis, very clear. I can't decide on what to do right now and this helped. Whats 100$ more or less if the time is right, eh?

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cendana287 (40) · 7 years ago

By the way, hope you won't mind too much my putting a no-shame plug here with this link. It's somewhat related to your post. On how to minimise stress whenever the market moves against us.
https://steemit.com/cryptocurrency/@cendana287/how-to-minimise-stress-from-the-crypto-and-financial-markets-sharp-corrections

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prakashghai (63) · 7 years ago

61.8% retracement levels mostly work

Smart choice to buy more !

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oriongazer (39) · 7 years ago

Thanks for the technical analysis... very helpful. We have a great network here!

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orhun (6) · 7 years ago

@penguinpablo Interesting Tale. Hope you can get what you would like from this challenge. Have got a awesome working day. Upvoted.

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steponas (34) · 7 years ago

Some support we have near $3000, just interesting how much bitcoins and altcoins Chinese have which they will sell because of regulations, scare, local info. We don't feel what's happening in China.

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twinbraid (71) · 7 years ago

I agree with you

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sversus (42) · 7 years ago

RSI is oscillator and it is good for the range trading, but now the range is broken, so RSI now is more harmfull than usefull. Support level is strong, and it is FIBO level as well, but it doesnot mean it can not be broken. If it happen, downswing will be dramatic, and we can see 1700-1500 soon.
Conclusion - if one is greedy or risky then sure one can start to buy, but with short stoploss. More reasonable is to wait untill RSI turn upward and show a least sign of upward correction.

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murdanialthaf (45) · 7 years ago

Great post @penguinpablo

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alen042 (34) · 7 years ago

Great post!!!!!!!!!!!!

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rocksg (69) · 7 years ago

I am also the same side as you are. These news do not have any long term impact on the bitcoins price.

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steem77 (59) · 7 years ago

I really like to read this post, yesterday in aceh this became the talk, and for us this is an opportunity to buy steam, because we have not been able to buy bitcoin, I ask permission to @ penguinpablo to translate the entire contents of your post, for me write back in Indonesian, and this is my post today, and I quote your post: https://steemit.com/promo-steem/@steem77/impact-of-the-3rd-largest-bitcoin-exchange-in-china-on-the-promotion-of-steemit-in-aceh

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penguinpablo (75) · 7 years ago

No problem if you want to translate my article to Indonesian :)

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steem77 (59) · 7 years ago

Thank you brother .. regard from aceh

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foxkoit (70) · 7 years ago

Just buy now... buy...buy .

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sabalinet (8) · 7 years ago

@penguinpablo The online market place is a wonderful industry for truth of the matter and lies. Now it is actually quite challenging to acknowledge where by the reality is.

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teddieelga (5) · 7 years ago

@penguinpablo Your generate up is spectacular. Mad regard for sticking as a result of many of the hardships, Many of us would've Give up A great deal before. Upvoted.

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robert31 (54) · 7 years ago

the bitcoin is best side int world..thanks for sharing...

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nazarwills (55) · 7 years ago

Thankyou for sharing @penguinpablo . 👏

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tumutanzi (71) · 7 years ago

Today is your lucky day. Congratulations.

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denmarkguy (76) · 7 years ago

And meanwhile, we already have the massive bounceback rally happening... just six hours after you posted this I'm seeing BTC come back to cross the $3600 line.

Definitely going to be a rollercoaster month...

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stackin (78) · 7 years ago

But some steem people :)

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kiaazad (59) · 7 years ago

I found your post 3 days late but it seems you where right. will follow you for the next one.

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santiago43 (29) · 7 years ago

Gimme those Coins!! Do you make any other alt coins or just the ones shown in the picture?

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Bitcoin Technical Analysis: My 5 reasons why I bought Bitcoin todaysteemCreated with Sketch.

1. FUD (Fear, Uncertainty, and Doubt)

2. RSI

3. Bollinger Bands

4. $3000 is a resistance level

5. 61.8% Fibonacci Retracement level at $3041

Bitcoin Technical Analysis: My 5 reasons why I bought Bitcoin today