Hi guys!
So sorry, I've been super busy with so many things. I've spent so much time digging into ICOs that I didn't have the time to write a post (I might write a post about ICOs in the future).
If you are trading bitcoin you'll probably went through the correction a couple of days ago. There has been a lot of information out there about what is going on, what is going to happen, where bitcoin is going to go.
And I've you're new you'll probably confused of which one should you hear and my advice to that ignore every one of them including this post if you want. The last you want to do in a market like this is panic sell at the bottom.
My mentor told me that most of the media and information out there are just noise. The price will bounce after a correction (this would be perfect opportunity to exit all your positions if necessary)
Nobody can predict what is going to happen with the price action. And if you see people posting chart saying BTC price will go to this way with fancy tools don't just simple buy into it. Then again I'll post chart about what you should look for in a market like this.
Tool used: Ichimoku Cloud & Fib Retracement
The indicator is simply telling us that the support has broken through (which is not good) but then again this run up has been parabolic. Simple tips for this ichimoku cloud; never trade while price action is inside the cloud.
Tool used:Fib Retracement
Check out the wick is nicely touching the 0.5 fib level. Market correction like this is not new in bitcoin price.
It is almost to be expected. If you think about it all time high is at USD$20,000 and last couple of days it went to USD$9,000. That is 50% correction for you or 50% discount (if you can look at it that way).
In my personal opinion fib retracement is the best tool for TA (technical analysis).
Tools used: Fib Retracement & Head and Shoulder
Most of the time H&S (head and shoulder) is a sign of reversal. Now you cannot say that you don't see that gigantic H&S on the 1 day chart.
I think if BTC price hits USD$8,000 that would complete the neckline and a strong confirmation of bear trend.
Bear with me guys this is the last chart!
Tools used: Fib Retracement & Trend line
This is the conclusion guys. By conclusion I mean price you should pay attention to for confirmation of either bear or bull trend.
My final advice is if you don't know what to do simply do nothing until BTC consolidates.