Upside Volatility Steadily Decreasing, Signal for Potential Sell

While several exponential moving averages still signal that BTCUSD is trending upwards, traders are witnessing a significant decrease in volatility to the upside as measured by rate of change (ROC). Although volatility is usually not a quality sought after in assets, for BTCUSD traders it is fundamentally a function of why investors get in long or short for the very short-term gains. However, these very short-term gains can quickly turn into very large losses if not positioned correctly with adequate stop-losses. Moreover, we can see that if one were to enter long after the short increase in upward ROC back in August, September, or November in 2018, it won't take a financial expert to see how poor this decision was. This thesis held true in December 2018 where we saw upward momentum towards current price levels only to be knocked back down again. Its taken three months for that price level to recover.

Bottom line: hindsight is of course 20/20. But the pattern of short-term bull runs in BTCUSD suggests that upward momentum in BTC does not last long. For more financial analysis, check out www.anthonylaurence.wordpress.com