Bitcoin short term reversal!

16 Ağu 2018

Hello Traders,

After a month long of bear market, Bitcoin is finally showing a sign of recovery again, and there are several indicators that backing up this idea:

1) High volume: if you look at the daily chart, we see that there is a very high buying volume yesterday. As a matter of fact, we did not see this much volume since April 24th. This usually means that people who sold their bitcoin is coming back to the market and there are potentially new investors are looking to invest in Bitcoin as well.

2) No lower low: If you have been following bitcoin for a year, you know that every time Bitcoin enters bear market, we constantly see lower lows (with one exception). This time, however, bulls successfully defended 6K psychological support and manage to get higher low. This is very a bullish sign, and this may be part of the reason we saw huge volume yesterday.

3) Indicators:
A) MACD: there may be a MACD crossover today or tomorrow --> Bullish
B) RSI: it was in overrsold region briefly. When Bitcoin is oversold, there is always a relief rally.
C) Bollinger band: This indicator tells me that we will see immediate relief rally up to 7K, followed by 8.1K depending on where it find the resistance.

I will be playing very conservative on this trade. I will cash some money out when it hits the blue trendline and observe the market behavior. This target will most likely coincides with 7K and middle line of Bollinger band, so I expect it to be huge resistance. If There is a breakout from this blue trendline, I will start to add more position and sell it around 8K and observe the market again.

Happy trading.

16 Ağu 2018

Not

In a shorter time frame, we see that potential inverse head and shoulder pattern is taking place. Bears are making their final attempt to drive the price of bitcoin down as they want to alleviate the chance of this bullish pattern from forming. If bear manages to push below the blue trendline, the inverse head and shoulders pattern will be invalidated and we may see another bear trend. Looking to short my bitcoin position if it goes below blue line. (use tight stop losses for this trade)

16 Ağu 2018

Not

It's funny that 5 mins after of the previous posting, we say a bear breakout. Let's see if 6231 support hold. If not, then next support is 6100 which is the target for this bear breakout.

17 Ağu 2018

Not

Bulls successfully defended this time. Bitcoin found support at 6231 once again. I re-entered my position when I saw Bitcoin printed higher low. Market sentiment looks pretty good now. Some of the alt-coins are making big moves.

17 Ağu 2018

Not

Inverse head and shoulders pattern complete. However, what concerns me the most is that we will enter weekend, which usually lacks volume. If we don't see the bull breakout, we may see 2 days of sideway movement.

17 Ağu 2018

Not

Every time Bitcoin goes above 6500, bears are trying their best to reject bullish breakout from inverse head and shoulders pattern. At the same time, bulls have established orange trendline support. I really have a bad feeling now, as there is a large alt-coin sell off in past 30 mins. We may see bearish breakout in next few minutes.

18 Ağu 2018

Not

I am still not convinced that this is a inverse head and shoulders breakout. The volume is non-existent. Remember the inverse H&S pattern breakout on July 18th? We saw a huge volume spike after the breakout.
Just trade safe in next few hours/day. This may be a bull trap.