Amazingly range bound again. The daily range has narrowed to an incredible $19 dollars, from a daily low of 6394.70 to a daily high of 6415.08, going off closes. Amazon stock is more volatile than Bitcoin right now. Now I'm not suggesting you rush out and set up retail brokerage accounts, don't forget we have the alts to play with. However, to each their own and I can understand the frustration creeping in from those who just want that patented Bitcoin volatility. For traders to profit, they have to have volatility. Unless you're on BitMEX or trading alt-coins, you're just not seeing the profit incentive to trade Bitcoin right now, and I understand that.
Let's take a look at our handy dandy oscillators on the daily time frame. Our trusty Fisher shows us that we're neutral, however we did just bottom above the zero line which is a good sign. Generally when the Fisher bottoms above zero it's an indication that an uptrend will continue. Conversely, when we see the Fisher top below zero, it's an indication that the uptrend is dead, and we should be looking to sell or short.
Looking at Ichimoku, we are well below our Base Line, and far below the cloud. Our cloud resistance begins at the low 6500's and our Base Line is all the way up at 6700. So those are potential areas of resistance for us to look at if we start making the climb back up.
Volume Profile shows us that we're still consolidating right below the Point of Control, so 6435 could also act as potential resistance for our upward movements.
So on the daily time frame, we're looking for a close above 6415 to indicate that the bulls are back in control, or we're looking for a close below 6394 to show bearish strength. Keep in mind we need to look for spikes in volume to truly confirm which direction the market is going to take.
Sentiment Analysis -
Bitfinex: We see a drop in longs and an uptick in shorts. Without a resultant combination of volume however, and since the change isn't very dramatic, this leads me towards a bearish sentiment.
Bitmex: Shorts are slightly dominant, with 52.96% of positions. This is a slight margin, and also leans bearish.
So our technical analysis is slightly bullish, but our sentiment analysis is slightly bearish. And there's no volume. What does that mean? That means we probably don't want to do anything on the larger time frames. That means we probably just want to sit on our hands, study more, increase our knowledge and confidence for when the market moves come, and they will come. In the mean time, we've got some delicious alts that just love Bitcoin's low volatility.
Let's take a look at our handy dandy oscillators on the daily time frame. Our trusty Fisher shows us that we're neutral, however we did just bottom above the zero line which is a good sign. Generally when the Fisher bottoms above zero it's an indication that an uptrend will continue. Conversely, when we see the Fisher top below zero, it's an indication that the uptrend is dead, and we should be looking to sell or short.
Looking at Ichimoku, we are well below our Base Line, and far below the cloud. Our cloud resistance begins at the low 6500's and our Base Line is all the way up at 6700. So those are potential areas of resistance for us to look at if we start making the climb back up.
Volume Profile shows us that we're still consolidating right below the Point of Control, so 6435 could also act as potential resistance for our upward movements.
So on the daily time frame, we're looking for a close above 6415 to indicate that the bulls are back in control, or we're looking for a close below 6394 to show bearish strength. Keep in mind we need to look for spikes in volume to truly confirm which direction the market is going to take.
Sentiment Analysis -
Bitfinex: We see a drop in longs and an uptick in shorts. Without a resultant combination of volume however, and since the change isn't very dramatic, this leads me towards a bearish sentiment.
Bitmex: Shorts are slightly dominant, with 52.96% of positions. This is a slight margin, and also leans bearish.
So our technical analysis is slightly bullish, but our sentiment analysis is slightly bearish. And there's no volume. What does that mean? That means we probably don't want to do anything on the larger time frames. That means we probably just want to sit on our hands, study more, increase our knowledge and confidence for when the market moves come, and they will come. In the mean time, we've got some delicious alts that just love Bitcoin's low volatility.
Build Your First Trading Strategy Today With Our Free Guide!
fivemistakes.crackingcryptocurrency.com
Copy Trade Me On Fairdesk - Earn While You Sleep!
www.fairdesk.com/signup?vipCode=CrackingCrypto
fivemistakes.crackingcryptocurrency.com
Copy Trade Me On Fairdesk - Earn While You Sleep!
www.fairdesk.com/signup?vipCode=CrackingCrypto