AlexPrather
Long

Bitcoin ready for massive mean reversion, and maybe more

BTCCHINA:BTCCNY   Bitcoin / Chinese Yuan
340 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.
Nice analysis!
Reply
United States
United Kingdom
India
Deutschland
France
España
Italia
Polska
Türkiye
Россия
Brasil
Indonesia
Malaysia
Việt Nam
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Priority Support Contact Support Ideas Published Followers Following Private Messages Chat Sign Out