AlexPrather
Long

Bitcoin ready for massive mean reversion, and maybe more

BTCCHINA:BTCCNY   Bitcoin / Chinese Yuan
307 1 4
My last chart i described how the prolonged basing at the 480 area was going to create a massive move wherever the volume came in. The volume went to down side and from there we have seen nearly non stop selling all the way down to 280, a 200 dollar move in around 2-3 weeks. To say the least the emotion has been absolutely insane. a 30k wall got eaten in 4 hrs, there are days where bitstamp only has 12k~ volume . It might be a little bit late to get in at current prices, but overall risk reward heavily skewed to upside

Technicals:
MASSIVE coiled spring. Price has been falling since july 22, and has been falling faster and faster culminating in a day where we had 4x the average volume on both downside and upside. All this while daily rsi has been under 50 for over 2 months, and we are seeing short term divergences on 6h and daily in strength based on rsi .

Short term mean reversion: I like to play charts where i think the longer term adds up with short term, the selling as of late has been so fast and furious that price has been waaaay out of any moving average , even the 4ema couldnt properly track price! 4 ema hasnt crossed 9 ema in ages.

Fundamentals: To be honest these dont really matter in bticoin. but we have a CFTC meeting coming thursday, could be huge news. As always bitcoin has continued ot have good news, but that never stopped it from going down. Startups keep getting funded etc.

Might be a little late to chase now, especially if you are levereaging, but if you are a HODLER as long term holders are called in bitcoin , might be a good time to buy and just wait it out. Price targets are 380, 420, and 480.
MoonTrader
2 years ago
Nice analysis!
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out