Technical Analysis:
- Bitcoin BTC/USDT follow up from previous analysis - see LINK
- BTC broke out 7/7/2018 as expected, and the BULL SCENARIO played out
- Since then, BTC has been consolidating and has formed a bull flag
- There is a lot of support
- The 55 day EMA is acting as support on the 1 hour chart
- The 200 day EMA is acting as support on the 4 hour chart
- Previous price action is serving as support
- It took a lot for BTC to get over $6700 so it will serve as strong support
- Bull flag formations have a high probability of breaking upwards
- BTC is still in the upward channel
- This is not necessarily a good sign
- Bulls need this to break out more significantly sooner than later (2-3days)
- If BTC stays in this channel, expect it to break down
- There is a lot of support
- Volume is key again
- Significant buy volume is going to have to come in order to break out of this bull flag and test $6800
- The bull flag pattern that has formed is a good sign that this will rally will continue upwards
- $6750 is the key resistance that will need to be broken in the short term
- RSI is looking bullish and trending upwards on the 1 hour chart
- Currently at 45 on the 1 hour chart
- This will have to continue and get to the 60-80 range again, but momentum in on the bull side
INVESTOR NOTES:
To be clear, these notes are from the perspective of a day/swing trader. The notes above are not applicable to long term investors. Corrective price action and intermediate spikes in this market are of no consequence to anyone holding for long term/ larger percent gain moves.
- If you are an investor for the long term, these prices are great buy zones
- Buying at $5700, $6800, or even $8000 is of little or no consequence when you believe the price will one day be $50,000 or beyond
- Good investors will accumulate over time, constantly cost averaging their positions, with confidence that current market prices do not represent the true value of the asset in the long long term (anywhere from 6months - 4 years)
- Bitcoin and Cryptocurrencies are still in its infancy as an asset, with only a few hundred billion in its total market cap - as compared to the trillions in the majority of all other asset classes
- Patience is key
- I am a long term BULL
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LEGAL DISCLAIMER:
I am not a financial advisor, nor is this post intended to be financial advise. I encourage you to do your own research before investing, or trading, any coin, token, stock, or security. This blog is intended for me to document my own personal analysis, charts, trading decisions, and experiences. If you would like to learn more about trading, cryptocurrencies, and the resources I used to learn how to trade and invest, see my previous post - LINK.