The Death Cross has come and gone, and if you are one of the people that sold the cross over you sold at or near the bottom. We mentioned that this is an area to buy not sell and though we can always go lower, selling these types of signals often result in selling at the bottom. This is why Wall Street posts these types of indicators. Not to provide insight and educate the retail trader in how to make money, but to invoke fear. Wall Street has its own set of morals and it is not in the favor of the retail investor.
“It’s morally wrong to allow a sucker to keep his money”. W.C. Fields
Technical: We tested the 6427 level and quickly pulled back from this as buyers bought the dip. I mentioned I wanted to see two closes above the 7400 level before entering a trade only because I already have two active trades at higher levels. Keep in mind we have had two successful trades that have reduced the overall position average but we do not want to give any gains back, so I am being cautious. If you do not have a position I would be looking to add a small position (1/3-1/4) on any pullback. This reduces risks and allows you to ease into the market. Let me be clear “IF YOU DO NOT HAVE A CURRENT BITCOIN POSITION”.
But most of us do, so what levels are we looking at. The first bullish hurdle comes at the 7480 level or the 0.382 retrace of the previous bearish swing. A breakout would signal a potential trade setup with an initial target of 9755. We would likely see resistance at the 8127 level or the 0.618 retrace of the bearish swing. I am also looking at a close above 7400 where I would add on a pullback and reversal signal. This is the ideal setup.
A break of 7000 would bring back into play the 5865-6615 support levels, where 6079 support, short covering and a likely bounce. This area is just above the previous low back in February. There are a lot of support and fibbonacci levels in this area which is why it is the likely area for a double bottom and reversal IF we retest the zone. The bears need to break the 7000 support level to see the possibility of a lower low, and with short interest being near all time highs this may be too crowded of a trade to add many more positions. We more likely see a break of the 7480 level causing a short squeeze, and if you are still short this market you are now walking around a fire with gasoline.
Summary: After the hype of the Death Cross it appears that Bitcoin may be rising from those calling death to crypto. Is this the resurrection? Only time will tell but we have a clear wave count on many coins and this could be the buying opportunity of 2018. I am looking to buy bitcoin on a pullback along with several other coins like OMG NEO and ETH which are setting up nicely. We will post trades as we update. At this point the bad news is well priced in. Short of governments outlawing cryptos the market is close to or has found its bottom.
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As we pull back this is the area we are looking for a reverse as we stated above. Now this does not mean we go higher, but if this is the beginning of a bullish move this is the area we are looking at to add. NOW LET ME BE CLEAR AS IT APPEARS THAT MANY DO NOT READ THE ARTICLES. THIS IS NOT A BUY YET!!!!!!! WE CAN GO LOWER!!!!!!!! We are simply letting the market cycle and are looking for a bullish reversal signal or a bearish continuation.
There are many that are calling for 5000 bitcoin just like there were many this morning thinking the market was doomed due to the Trade war (allegedly). We wrote this morning to our readers that this was not a time to sell but buy. The market has recovered since.
So though we can still go lower, technically we are at a likely area for a bullish reversal. If we get a reversal signal we will post the trade elsewhere.
LMAO! ok everyone clam down first. Blood is rushing to Goldi's whole body when BTC pops up a lil so you all guys please keep cool and just hear me out. Let's address every bit of this magnum opus:
1. “It’s morally wrong to allow a sucker to keep his money”. W.C. Fields - Correct! And if you start adding here at 7,2-7,4 thinking that 6,4 was the bottom of this market, your picture will be right by this quote how a sucker looks like in real life
2. DEATH CROSS and Goldi's resurrection idea (absurd) - it is still playing out on the daily chart. Who said it is over - celebrating too early!
3. 9,7 next? Are you kidding me? This pump will end in a dump either at 7,8 max at 8,5 The party may also be over around 7,6 - easy!
Look at the chart - we are trading way below the long term pink trendline that was very very important to hold. We dropped under the yellow support line and were pumped artificially. But look at the green volume bars and compare this pump with the pump on the 6th of February. You see? This is nothing and is a bait for you. You bite it you will be eaten up.
This is a bull trap. BTW stocks yesterday dropped below 200 MA. Untill we are trading under 200 MA on daily chart I am not going long. I can trade breakouts and go conservatively long in and out but I am not holding the bucket.
JRHIF
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@venturetrade, I dont see a reversal any time before a solution on scalability problems become tangible, practical... I see as the next step of the stair, one if we cant walk thru may result in a much longer fail for btc. Anyways, I think there may even be a pull back from the last dip to your pink, but it would be unlikely. As soon as the tech evolves to what the world needs, on the user end, the price may start pumping again.
@JRHIF, there is no problem in scalability because scaling means centralization and bitcoin is decentralized by definition. Listen to more Antonopoulos talks, he explains it well.
JRHIF
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@panconpalta, Im sorry, Im no specialist, but I belive you mistaken two different concepts. Scalabillity is a problem, period. Some of the solution people are thinking about involves centralization. People want to solve the problem of scalabillity by centralizing part of the blockchain ecosystem
goldbug1
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@venturetrade, calm down venture. Did you see me say buy? I said if you have NO position it does not hurt to add a partial position here. I even stated “let me clarify” I guess some still can’t read but they sure can write novels.
venturetrade
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@goldbug1, it will hurt trust me. better sell now if you did not still
UnknownUnicorn995432
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The lives and deaths of bitcoin... They should change the name of BTC to Tom Cruise. This way we can see BTC in the next Edge of Tomorrow movie. lol
Since 2011, BTC has been the asset of choice for people to lose money. If it can go from £32 to $1 (losing more than 90%), from $1200 to $100 (losing more than 90%), then current levels are not that bad. :)
Ad BTC always comes back 1000 times stronger. So those who can hold, should hold....
1. “It’s morally wrong to allow a sucker to keep his money”. W.C. Fields - Correct! And if you start adding here at 7,2-7,4 thinking that 6,4 was the bottom of this market, your picture will be right by this quote how a sucker looks like in real life
2. DEATH CROSS and Goldi's resurrection idea (absurd) - it is still playing out on the daily chart. Who said it is over - celebrating too early!
3. 9,7 next? Are you kidding me? This pump will end in a dump either at 7,8 max at 8,5 The party may also be over around 7,6 - easy!
Look at the chart - we are trading way below the long term pink trendline that was very very important to hold. We dropped under the yellow support line and were pumped artificially. But look at the green volume bars and compare this pump with the pump on the 6th of February. You see? This is nothing and is a bait for you. You bite it you will be eaten up.
This is a bull trap. BTW stocks yesterday dropped below 200 MA. Untill we are trading under 200 MA on daily chart I am not going long. I can trade breakouts and go conservatively long in and out but I am not holding the bucket.