Bitcoin - where to buy when everyone is selling?
In this short post I’d like to show you the power of Bollinger Bands and MA20 on bitcoin weekly chart and give you one more option where to place buy orders when bitcoin suddenly becomes “forbidden” / “dead” / “fraud” / “burst”
If we look back into the history of bitcoin since the end of 2015, we’ll see that each time when a weekly candle is closed below the upper Bollinger Bands line, a correction with the minimum price laying down in area of WeeklyMA occurs.
Here are the examples:
2015-12-21: closing below the upper BB line -> 11 weeks of consolidation within MA20 area (~ $356 - $419)
2016-06-20: closing below the upper BB line -> 12 weeks of consolidation within MA20 area (~ $500 - $650)
2017-01-02: closing below the upper BB line -> bounce from MA20 (~ $736)
2017-03-06: closing below the upper BB line -> 4 weekly bounces from MA20 area (~ $920, $900, $964, $915)
2017-06-12: closing below the upper BB line -> bounce from MA20(~ $1796)
2017-09-04: closing below the upper BB line -> bounce from MA20 (~ $2967)
2017-11-06: closing below the upper BB line -> failed to reach MA20 target / trend continuation
2017-12-18: closing below the upper BB line -> bounce from MA20 (~ $9047)
We (maybe some of us) witnessed 9 corrections of the similar type since the end of 2015 and almost each time (8/9) the bearish target laid in area of weekly Moving Average 20.
It’s worth to say that once the price haven’t reached the MA20 ( we can remember this week as the time when Bitcoin Cash was about “to kill Bitcoin forever” ) and the price continued to rise afterwards.
At no time in history of bitcoin since 2015 when the weekly candle was closed below the MA20, so this area could be one of the safest places to put buy orders when the next correction comes.
Have a good trades and never be shaken out during corrections.
If we look back into the history of bitcoin since the end of 2015, we’ll see that each time when a weekly candle is closed below the upper Bollinger Bands line, a correction with the minimum price laying down in area of WeeklyMA occurs.
Here are the examples:
2015-12-21: closing below the upper BB line -> 11 weeks of consolidation within MA20 area (~ $356 - $419)
2016-06-20: closing below the upper BB line -> 12 weeks of consolidation within MA20 area (~ $500 - $650)
2017-01-02: closing below the upper BB line -> bounce from MA20 (~ $736)
2017-03-06: closing below the upper BB line -> 4 weekly bounces from MA20 area (~ $920, $900, $964, $915)
2017-06-12: closing below the upper BB line -> bounce from MA20(~ $1796)
2017-09-04: closing below the upper BB line -> bounce from MA20 (~ $2967)
2017-11-06: closing below the upper BB line -> failed to reach MA20 target / trend continuation
2017-12-18: closing below the upper BB line -> bounce from MA20 (~ $9047)
We (maybe some of us) witnessed 9 corrections of the similar type since the end of 2015 and almost each time (8/9) the bearish target laid in area of weekly Moving Average 20.
It’s worth to say that once the price haven’t reached the MA20 ( we can remember this week as the time when Bitcoin Cash was about “to kill Bitcoin forever” ) and the price continued to rise afterwards.
At no time in history of bitcoin since 2015 when the weekly candle was closed below the MA20, so this area could be one of the safest places to put buy orders when the next correction comes.
Have a good trades and never be shaken out during corrections.