Analysis of BTC Chart: Decline Innevitable?
Disclaimer
I'm relatively new to the game, so any trading advice I give should be taken as an opportunity for discussion and food for thought rather than as sound financial advice. Furthermore, I'm only 17, so keep that in mind as you read and take everything here with a grain of salt. Trade intelligently and at your own risk.
Analysis of BTC Chart: Upward Wedge
While studying the charts for BTC over the past couple of days, I started to notice a few trends that caught my eye, and I wanted to share this insight here. As we can see from the first chart, over the past few weeks Bitcoin has consistently remained relatively well confined within these two primary trend lines, with the steeper line acting as a measure of support and the shallower upper line acting as a measure of resistance.
While the chart touches more lightly upon the line of resistance than the support line, the trend is still a strong one, with the price touching the resistance line several times before rebounding, each time slightly less and with slightly weaker volume.
What Could This Mean?
As seen in the chart above, the 15- and 30-period moving averages still remain under the price and have not yet begun to cross. This indicates that the trend is not yet broken, and the price is likely to remain relatively high in the short run. The trend lines allow, and maybe even suggest, a possible push upwards to the support line once more before the predicted decline begins. Volume, while weaker, is still supporting the price, leading me to believe that we can expect a delay before the downturn begins. There are 3 main indicators that one should look for to see the new trend form.
In the order they will likely occur, they are:
- A decline in buying volume as the price continues to rise. This will show that buyers are losing interest and giving ground to sellers.
- A break through the support line. This is an indicator that the price is no longer moving with the previous trend it had established.
- The price crossing over the 15-period moving average, and then the 15-period moving average crossing over the 30-period moving average. This will indicate the formation of the new trend and will be the last major buy signal.
I hope you enjoyed this post and appreciated the insight. If you did, please upvote and resteem, and feel free to comment below with any questions or suggestions you have! Happy trading!
Hey @diss0nance, I have to admit your provide some pretty interesting evidence for your claim. A question I have for you is, what would you recommend for bitcoin investors to do when these "sell signals" are shown? Do you think cashing out or investing in altcoins temporarily would be more profitable?
Couldn't tell you much about altcoins if I'm being honest, if you had a lot of capital to throw around then you would go short, obviously selling off BTC in the process.
Just buy more Steem, EOS and golos bro, you will thank me later
Just Sell SBD on Bittrex for BTC, sell that BTC for Litecoin or Ethereum, send that to Exodus and shapeshift to EOS, or just send SBD to Openledger.io and sell SBD for BTS or USD and then buy EOS (open.EOS )
It is very fun and nice to get a piece of EOS blockchain, you will be very happy
I traded as a professional for over 20 years. I won't comment specifically on your post but will leave you with a word of caution. All markets today have been and continue to be manipulated. Be very cautious of your trades and never be in a long or short position in today's markets when you are not in a position to be watching the market and having a finger on the trigger ready to close or open a position at a moment's notice.
Thanks for the tip, hope I at least had decently good analysis though?
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Thanks so much! It definitely is an exciting platform to use and the community is great, can't wait to see where it goes from here.
Manny good things will come to you with this attitude :)
Decent analysis.
The nice thing about BTC though....if it crashes it's just time to buy more.
To the moon!
Lol I like your style. The next few hours are pretty important to see if I'm right, anxious but optimistic
It's gonna break 12k
Wall Street has taken interest, even JPMorgan changed their tune.
It's only just getting started.
Yep looks to be the case. Now we just wait to see if it ever meets resistance. It does seem like it's going to keep going though, at least at this rate.
15k by Christmas.
Then a correction.
You're probably right, but why do you think so?
Cause I'm Jonny Christmas.
14k!
To the moon!
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I asked @dreamm and @heroinehero to get THEIR schools onto steem,. also we have planms with @mughat to create a Dash4Nigeria style Steem School proposal, where we use Steem reward Fund to pay for our OWN University for steem, OR use the Reward Pool tp PAY for our own Ad Agency or payment processor, SO many great ways to allow steem to pay for its own growth through Education and advertising!
@mcsamm @tj4real @richforever @anaman @xpency @collinz @kwakumax are all working with me to help spread steem through the University System in Ghana and Nigeria, and so we should all work together, maybe use what Grants we can find from US government, use what we can, I bet there is money already allocated for charity programs meant to help Your School and we can GRAB that money and use it for promoting steem, and ypou can become very wealthy doing it,
just start posting more about spreading steem at your school!
Put yourself in charge of promoting steem in your local area and at your school!
Thanks man I appreciate the support! Those sound like great projects for promoting the platform, I'll make sure to follow some of them and continue to post about our ongoing project!
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