Bitcoin Technical Analysis: Is The Bottom In?

in cryptocurrency •  6 years ago  (edited)

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In yesterday’s video analysis, I warned that the $6,500 level would more than likely not hold. Price dropped to approximately $6,130 (0.8865 fib level) before bouncing. It’s currently sitting around $6,500.

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So have we seen the bottom? I doubt it. The volume isn’t there...at least not yet. I believe there’s a good chance price will test $6,000. That said, we could see price rise in the short term to reset oversold indicators. Shorts are stacking. I believe the market makers may run a stop hunt to liquidate shorts before the drop to $6,000. If price rises above $6,900, I’ll be much more optimistic that the bottom may be in.

Looking at the 1 day RSI, we can see it’s created a triple bottom at around 30.5. If it tests this point again, I believe it’ll likely break. That could bring price down to at least the prior low of $5,770.

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In today’s video update, I discuss the market from a micro and macro point of view. I also briefly review my trading strategy, price movement in the short term and MUCH more. If you’re not watching my videos, you’re only getting a small part of the story.

Video Analysis:

If you’re viewing this on a site other than Steemit, and you don’t see the above video, navigate to Steemit or TIMM (https://mentormarket.io/profile/@workin2005?aff_id=Workin2005) in order to watch.

BIAS:

Short Term: Slightly Bearish
Longterm: Very Bullish

I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!

Workin

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Seems like we are forever lingering near the mining breakeven point

Funny how that happens...

  ·  6 years ago (edited)

Right now I am Loving this "K=50" Stoch setting that I have dialled in for the daily BTC chart. I used it in this post and have been watching it since. As you can see (in stark contrast to the regular K=14 Stoch and commonly used Stoch RSI), it's still predicting a further drop. Of course TA is always just TA, but this indicator seems to work really well set up like this.
Screenshot_11.png

Nice BB. Looks like that’s historically been a good setting to estimate the bottom. Not always accurate....but what is? Thanks for sharing. 👍

Yes, it's all in the settings. This one is really good medium to long-term. It took quite a bit of theoretical reasoning, followed by practical trial and error to find the right indicator and settings for it.

As you say it isn't perfect, but that's where our job begins! After all, all TA is open to interpretation. For proper long-term you have to increase "K" more. I find that on this setting it predicts most accurately when it forms a steep peak or valley (as it has recently). It seems like when it crosses into overbought/oversold territory and stays there, then the significance of the indicator diminishes and the corresponding price movement is over a far smaller range.

Nice analysis. I agree, definitely keep a watch on the RSI, especially for any bullish divergence.

I liked the past on the weakening gradient in the video (approx. 7 mins), an interesting idea.

regards ! very good analysis I agree with you about the main support. you have to take advantage of that bounce