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The "Primary" Uptrend is intact. We are in a "minor" correction currently, with slowing intraday action.
50 Day MA is still trending up, so that is our Primary direction. This has not flattened nor turned down.
Fractals on longer term charts (not shown) are both confirming that Primary Trend is still OK, but some weakness is appearing.
Stochastic is beginning to show that the price is reaching oversold territory and could turn up soon. This should be expected.
MACD has entered a reversal in momentum, now less than zero with green and red line converging and has crossed. This is signalling a possible deeper downturn, but remember it is temporary.
We spoke in previous charts about 5700 being resistance. We hovered there for a while, retraced and broke through eventually. Then I said next resistance was about 6250. We got to right around 6200 (6189) and then hit resistance again, are now retracing, having broken through to the downside of 5700 which should have provided support.
There is STRONG support at 5100 should we go down that far, but I don't think we will.
Conclusion: I continue to HODL my BTC which is a significant amount of coins. I think that a lot of this sell off is because of the hard forks from BTGold and the upcoming Segwit Fork. All of this is similar to the first hard fork we had in July before a massive month long rise in August. Bitcoin went down and then went to new All Time Highs. This is pretty much the same pattern. REMEMBER, the July drop was scary and shook out a lot of people, but those that stayed in were rewarded well.
I am noticing that each BTC spinoff is like a stock dividend with similar chart action. We get a drop in BTC price, just like a stock would, when a new hard fork is in process, only to have a rebound in price once the hard fork is complete (similar to a stock rebounding after a dividend is paid). This is obviously something new we are contending with and if the pattern continues, it will be an unexpected bonus to holding BTC during hard forks, should others manifest. Free Money is always a good thing.
For the record, I am holding all bitcoin split offs for the time being. This just adds to my BTC wealth. Since part of the pattern is that alts rise when BTC falls (as all alts are priced in BTC so there is a reverse correlation), we could see significant jumps in these forked coins after Wave 5 ends. It would also be a good time to place trades on other alts, probably a select few, according to their charts, mostly in the top ten in market cap.
For the record, Wave 5 up in BTC will take us to somewhere between $7000 and $10,000. Personally, I think $10,000 will be a significant psychological barrier with wild news stories abounding and major FOMO from the masses. I actually expect $10,000 but it's too early to tell.
Many Blessings. Have A Great Hallowe'en.
The "Primary" Uptrend is intact. We are in a "minor" correction currently, with slowing intraday action.
50 Day MA is still trending up, so that is our Primary direction. This has not flattened nor turned down.
Fractals on longer term charts (not shown) are both confirming that Primary Trend is still OK, but some weakness is appearing.
Stochastic is beginning to show that the price is reaching oversold territory and could turn up soon. This should be expected.
MACD has entered a reversal in momentum, now less than zero with green and red line converging and has crossed. This is signalling a possible deeper downturn, but remember it is temporary.
We spoke in previous charts about 5700 being resistance. We hovered there for a while, retraced and broke through eventually. Then I said next resistance was about 6250. We got to right around 6200 (6189) and then hit resistance again, are now retracing, having broken through to the downside of 5700 which should have provided support.
There is STRONG support at 5100 should we go down that far, but I don't think we will.
Conclusion: I continue to HODL my BTC which is a significant amount of coins. I think that a lot of this sell off is because of the hard forks from BTGold and the upcoming Segwit Fork. All of this is similar to the first hard fork we had in July before a massive month long rise in August. Bitcoin went down and then went to new All Time Highs. This is pretty much the same pattern. REMEMBER, the July drop was scary and shook out a lot of people, but those that stayed in were rewarded well.
I am noticing that each BTC spinoff is like a stock dividend with similar chart action. We get a drop in BTC price, just like a stock would, when a new hard fork is in process, only to have a rebound in price once the hard fork is complete (similar to a stock rebounding after a dividend is paid). This is obviously something new we are contending with and if the pattern continues, it will be an unexpected bonus to holding BTC during hard forks, should others manifest. Free Money is always a good thing.
For the record, I am holding all bitcoin split offs for the time being. This just adds to my BTC wealth. Since part of the pattern is that alts rise when BTC falls (as all alts are priced in BTC so there is a reverse correlation), we could see significant jumps in these forked coins after Wave 5 ends. It would also be a good time to place trades on other alts, probably a select few, according to their charts, mostly in the top ten in market cap.
For the record, Wave 5 up in BTC will take us to somewhere between $7000 and $10,000. Personally, I think $10,000 will be a significant psychological barrier with wild news stories abounding and major FOMO from the masses. I actually expect $10,000 but it's too early to tell.
Many Blessings. Have A Great Hallowe'en.