Bitcoin Update Post China News current $4346.95 9Sept17
I always advocate: TRADE WHAT YOU SEE NOT WHAT YOU THINK
So let's use our Technical Analysis Skills to OBJECTIVELY analyze and interpret the markets and suspend getting carried away with the news.
At the end of the day price action is KING (or QUEEN) and news is incidental.
Today I will teach you 5 ways to read this Bitcoin price and how I SEE the markets OBJECTIVELY rather than emotionally:
1. Measuring the Range from the all time high top of 2Sep to the low of 5Sep we can plot our Fibonacci Levels.
Here we see resistance at the 0.618 level (approx 4603) and support above the 0.236 level (let's call it, $4280).
The above range (top and bottom of cyan dotted lines) indicates the market is RANGE BOUND between $4603 to $4280 a range of, let's call it $350.
That is to say, it is undecided which way it wants to go and the buyers and sellers are currently jostling for power
In an uptrend, that can be viewed as a CONSOLIDATION pattern
In other words, it is collecting enough energy to make a definite move again.
2. Support is resting on the Kijun Sen (black line) and we have not had a Tenken Sen (pink line) cross below.
3. Looking left (left yellow box) and we see price action resting on an old top, as well as previous support roughly at these prices
4. We remain above the Ichimoku Cloud and EMAs, this still remains a bullish sign
5. The momentum whilst falling still remains confidently above the zero line
So in short, there is nothing to panic about at this stage. The market is testing the upper and lower limits of this RANGE and, until proven
otherwise, we must go with the rhythm of the market.
View the markets like a "bucking bronco" it wants to shake off the untrained and uninformed traders by sending false signals so it can trick you only to pass their money to astute traders who have educated themselves to read and interpret technical charts.
In addition, we have our line in the sand of $4,000 and $5,000 to guide us which way the market truly wants to go.
In conclusion, the recent sensational news from China may cause emotional traders to say we are Crashing and let's all sell but there is nothing to indicate that this is a huge selloff and the shorts may get caught like a deer in the headlights.
Now, this could all change if we start breaching this range and testing the $4000 or $5000 mark but for now, we TRADE WHAT WE SEE NOT WHAT WE THINK.
As we I remain bullish, this is a low-risk buying opportunity.
Hope this helps.
Sean Vengan, Professional Trader and Trading Educator
So let's use our Technical Analysis Skills to OBJECTIVELY analyze and interpret the markets and suspend getting carried away with the news.
At the end of the day price action is KING (or QUEEN) and news is incidental.
Today I will teach you 5 ways to read this Bitcoin price and how I SEE the markets OBJECTIVELY rather than emotionally:
1. Measuring the Range from the all time high top of 2Sep to the low of 5Sep we can plot our Fibonacci Levels.
Here we see resistance at the 0.618 level (approx 4603) and support above the 0.236 level (let's call it, $4280).
The above range (top and bottom of cyan dotted lines) indicates the market is RANGE BOUND between $4603 to $4280 a range of, let's call it $350.
That is to say, it is undecided which way it wants to go and the buyers and sellers are currently jostling for power
In an uptrend, that can be viewed as a CONSOLIDATION pattern
In other words, it is collecting enough energy to make a definite move again.
2. Support is resting on the Kijun Sen (black line) and we have not had a Tenken Sen (pink line) cross below.
3. Looking left (left yellow box) and we see price action resting on an old top, as well as previous support roughly at these prices
4. We remain above the Ichimoku Cloud and EMAs, this still remains a bullish sign
5. The momentum whilst falling still remains confidently above the zero line
So in short, there is nothing to panic about at this stage. The market is testing the upper and lower limits of this RANGE and, until proven
otherwise, we must go with the rhythm of the market.
View the markets like a "bucking bronco" it wants to shake off the untrained and uninformed traders by sending false signals so it can trick you only to pass their money to astute traders who have educated themselves to read and interpret technical charts.
In addition, we have our line in the sand of $4,000 and $5,000 to guide us which way the market truly wants to go.
In conclusion, the recent sensational news from China may cause emotional traders to say we are Crashing and let's all sell but there is nothing to indicate that this is a huge selloff and the shorts may get caught like a deer in the headlights.
Now, this could all change if we start breaching this range and testing the $4000 or $5000 mark but for now, we TRADE WHAT WE SEE NOT WHAT WE THINK.
As we I remain bullish, this is a low-risk buying opportunity.
Hope this helps.
Sean Vengan, Professional Trader and Trading Educator