Could the correction be over?
This is just my humble opinion on the direction of BTC, and trade plan. This is not trade advice.
The Bitcoin chart is starting to look Bullish.
1.) A reverse head and shoulders pattern seems to be forming. A break of the neckline will mean the trend is changing.
2.) BTC has broken out of it's downtrend on above average volume. Which is bullish.
3.) MACD is turning bullish and trending up.
4.) 200 DSMA has been holding support. We just saw a breakout above the 50 DSMA. The above average volume on this breakout is bullish.
-Trade Plan-
Entering 50% of my position on a neckline break and the remaining 50% on the first pullback confirming the trend.
If we see a move lower to test the previous shoulders low and the 200 DSMA, we may see some sideways movement while the market trends sideways for a bit. But, long term I am bullish.
But, if we see a pull back....
I will enter another 25% of my position to average down if we test the previous shoulders low, and the remaining 25% I will enter with a breakout of the previous high.
Fundamentals....
It's hard to judge BTC off of fundamentals. It is a speculative new asset that is in early stage adoption. Technical Analysis can help as it is the study of mass psychology. But, I will try to outline the fundamentals that I see.
Bitcoin does in fact have a use case as a very convenient decentralized store of value, as long as the market agrees that it has value. This store of value use case will increase as more adoption takes place and exponentially when the next debt crisis unfolds. A decentralized store of value will be very appealing at that time!
So far it's looking like $10,000 area is that value at this stage of adoption. This next bull run will bring in the masses. Once people see that the bubble has not popped and that there is still a lot more room for growth due to it's small fixed market supply, we will be off to the races again.
I think 2018 will see a faster rate of adoption as governments begin to regulate crypto. The average person won't be as reluctant to diversify a small portion of their overall portfolio into crypto. Goldman Sachs just bought a crypto exchange. They see the potential and don't want to miss out.
This is a truly global asset. With a decentralized global asset like this, the price of Bitcoin can become many multiples higher with wide scale adoption. As more news comes out during this next bull run, and Wall Street begins to enter this market. This adoption rate could be much faster. I think my generation (Millennials) as well as generation Z will be much more open to adopting crypto.
But, who knows...... I wish I had a crystal ball....
This is just my humble opinion on the direction of BTC, and trade plan. This is not trade advice.
The Bitcoin chart is starting to look Bullish.
1.) A reverse head and shoulders pattern seems to be forming. A break of the neckline will mean the trend is changing.
2.) BTC has broken out of it's downtrend on above average volume. Which is bullish.
3.) MACD is turning bullish and trending up.
4.) 200 DSMA has been holding support. We just saw a breakout above the 50 DSMA. The above average volume on this breakout is bullish.
-Trade Plan-
Entering 50% of my position on a neckline break and the remaining 50% on the first pullback confirming the trend.
If we see a move lower to test the previous shoulders low and the 200 DSMA, we may see some sideways movement while the market trends sideways for a bit. But, long term I am bullish.
But, if we see a pull back....
I will enter another 25% of my position to average down if we test the previous shoulders low, and the remaining 25% I will enter with a breakout of the previous high.
Fundamentals....
It's hard to judge BTC off of fundamentals. It is a speculative new asset that is in early stage adoption. Technical Analysis can help as it is the study of mass psychology. But, I will try to outline the fundamentals that I see.
Bitcoin does in fact have a use case as a very convenient decentralized store of value, as long as the market agrees that it has value. This store of value use case will increase as more adoption takes place and exponentially when the next debt crisis unfolds. A decentralized store of value will be very appealing at that time!
So far it's looking like $10,000 area is that value at this stage of adoption. This next bull run will bring in the masses. Once people see that the bubble has not popped and that there is still a lot more room for growth due to it's small fixed market supply, we will be off to the races again.
I think 2018 will see a faster rate of adoption as governments begin to regulate crypto. The average person won't be as reluctant to diversify a small portion of their overall portfolio into crypto. Goldman Sachs just bought a crypto exchange. They see the potential and don't want to miss out.
This is a truly global asset. With a decentralized global asset like this, the price of Bitcoin can become many multiples higher with wide scale adoption. As more news comes out during this next bull run, and Wall Street begins to enter this market. This adoption rate could be much faster. I think my generation (Millennials) as well as generation Z will be much more open to adopting crypto.
But, who knows...... I wish I had a crystal ball....
Comment:
Didn't hit my entry. Will add small position around $9k. Watching the volume here.
Comment:
A bunch of panic selling going on today. Some bot trading accounts on Binance were hacked. Sitting in Tether (Not very comfortable with this). Will be looking for a double bottom around 7k to add more. Will be adding some NEO as well. Hopefully around $65-$70
Comment:
Inverted Head and Shoulders completely failed. BTC Chart looks very bearish.
Comment:
A hammer closed over the 200DSMA. Watching this area. If it holds, we could go Bull. Very cautious in this area though. May take a small long position swing trade with a smaller profit target and tighter stop.
Comment:
Saw a deep sell off in NEO. Managed to load bags in the 50s for the long HODL