BITCOIN TRADING STRUGGLING TO SUSTAIN UPSIDE MOMENTUM
Bitcoin trading got a reminder, yesterday, of the volatility that can take flame, within minutes, in this market. Today’s price action confirms the view that price is in a downtrend and that the spike was merely an upward correction.
Bitcoin Trading and Price Analysis
Time of analysis: 15h46 UTC
Bitstamp 15-Minute Chart
From the analysis pages of xbt.social, earlier today:
A sell signal formed in the 15-minute chart [identified and illustrated at xbt.social] and it pulled price down to the red 200MA. The move has not been completed in all of the exchange charts: notably the CNY exchanges and futures charts do not yet have price at its 200MA.
Once price does achieve the 200MA, across exchanges, we would expect price to climb above and below it a few times (as per the price action in the left of the chart) before setting up the next decline.
Chart events like yesterday’s short, sharp sucker punch can really hurt the trader’s confidence (nevermind account funds), but seasoned traders always advise that one should put the loss behind you,back up, and look for the next opportunity. This is what we’ll do without anticipating the market.
As soon as price confirms expectation by consolidating to the 15-minute and 1-hour 200MA, a sell trade recommendation will be issued.
I’m more concerned about controlling the downside. Learn to take the losses. The most important thing about making money is not to let your losses get out of hand. – Marty Schwartz
Technical and pattern analysis can come to different conclusions depending on the exchange chart being used and, sometimes, the extent of completion of a price wave. For this reason it is helpful to utilize a strategy of stacking confirmations: if price fails to make a higher high and price falls below support andthe indicators signal a directional move. Once enough confirmations have been gleaned the moment for entering the market is more opportune and carries less risk.
Bitfinex orderbook depth and Buy/Sell Volume:
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The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Bitcoin price charts from TradingView.
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