Bitcoin Technical Analysis: My 5 reasons why I bought Bitcoin today
Here's why I've bought more Bitcoin today.
1. FUD (Fear, Uncertainty, and Doubt)
I actually never trade on news events. People are selling in fear right now because China may ban Bitcoin exchanges. I usually do the opposite as the herd. If everyone is selling I'm buying. I don't really care if the rumors are true or not. Even if China bans Bitcoin exchanges, Bitcoin is still an amazing alternative to the failing fiat money system. I see Bitcoin as Gold 2.0, a safe haven when fiat currencies fail due to inflation caused by insane money printing. The FUD from China is a buy opportunity to be thankful for in my opinion. Although I could be wrong of course. Time will tell... :)
Let's have a look at the Bitcoin chart (Bitstamp daily)
2. RSI
The RSI has fallen below the 30 level today which indicates Bitcoin is oversold. The last time this happened was on July 16 when Bitcoin made a low of $1830. The price more than doubled hereafter.
3. Bollinger Bands
Look how far the price is trading below the lower Bollinger Band. The current price is $3090 while the lower Band is at $3412. It never means we can't go lower, but historically the price has always moved back inside the 2 bands.
4. $3000 is a resistance level
I think $3000 USD is a physical resistance level. It was a top on June 11 and July 20 before it was broken on August 5.
5. 61.8% Fibonacci Retracement level at $3041
Bitcoin is currently trading around the 61.8% Fibonacci Retracement level between the low of July 16th and the top of September 2nd.
I think $3000 is a key level to keep an eye on. The "perfect buy" in my opinion :)
Disclaimer: No trading advice. I just gave you my reasons why I've bought...
https://steemit.com/trading/@igster/for-those-new-to-crypto-welcome-to-bear-market-and-some-resources-to-cope-with-it
My view on the market.
is my post : https://steemit.com/promo-steem/@steem77/impact-of-the-3rd-largest-bitcoin-exchange-in-china-on-the-promotion-of-steemit-in-aceh
Finally some common sense online. I see panic everywhere, but I think the drop in price is at 3000 already bigger than it should be seen the fundamentals. I think it is because recently many new investors came in and are not used to the volatility of BTC.
I think even if they shut down the exchanges, the loss in value is already priced in around this price. Finally Chinese people will find a way around and beside that Bitcoin is a global currency and taking off in many other parts of the world.
Also good news like a big Japanese company start bitcoin mining on big scale with more efficient chips seems not to be seen by the panicking crowd.
I have no money at the sideline to invest, because im heavily in already. If I had I should start accumulate cheap coins now. The only thing I will do is HODL!
Plenty of FUD going around as the dark side looks to crush the rebellion!
Very good reasons. I also bought today, but nothing stops the price going back to $2700 in the next 2 weeks. RSI and Bollinger bands can change in the next 2 weeks.
I'm buying a bit at the current level. But I'm with you on that one - I think the one-time highest level of $2,800-ish from last June is the support. But we will know soon enough.
Thanks for the Analisys!
I agree, I am buying now, in the worst case I made average with the other invest cost in the past and in the future.
"Averaging the price" - I'm following this strategy too. Never use all of one's capital at any one time. There must be some at the sidelines. To be used for moments like this.
Averaging is very effective. :) I'm using this strategy too.
Bitcoin is resilient and even if it goes below the $3000 resistance level i have a good feeling it is going to surprise a lot of naysayers when it hit $10 000 before 2018. Bitcoins has proven many critics wrong over the years and i bet it will do it again not to mention the many times it was said that it will die or crash. If bitcoin was a woman man she would be more beautiful than any super model out there.
@rogerblu
so true
It is a great buying opportunity...I picked up a batch at $3400 and will do so in this range.
Have a bit more powder ready to get in if we pull back to $2500.
The only thing the news is good for is to show the mentality of the public. As you mentioned fear is in the air.
Time to buy for sure! Even if it goes lower from here.
FYI... Upvoting replies to your posts, really helps the person replying (and you) so if you would upvote this reply - Thank you. :)
that's a bad idea to buy bitcoins today... I would suggest to buy them at 2000$ because by october end they will go down to the floor. you should be aware about the Pre-Order Mining contracts at Genesis mining (will be start from 31st Oct-2017) sold out in 2 days... millions of dollars they have made on it when the price was 4600$ of bitcoins... their contracts of bitcoins remain till they are profitable, difficulty, electricity charges & maintenance fee will increase in October , hence the contracts on lower hashes will be automatically canceled. therefore 40% contracts will remain in loss. Genesis mining will soon reduce price on contracts of Ether & Monero as they're still available & in not much demand. Count my words ! Cheers !
It's still gonna go more down I guess and so does steem, yeah!