Due to the sheer aggression of this rise, I have decided to make a quick update to yesterday's Bitcoin analysis.
Everything is going according to plan, the underlying trend-line discussed on the previous post broke to the upside and everyone must be wondering one thing: "How far can this rally go? Is it too late for me to jump in?".
The answer is never easy on impulsive waves like the current one, but there are some certain markers that show that this wave is not exhausted yet and it may not be time to book profits.
** The V-Shape ** As seen on the chart, I have included the price action since the June 2019 High, which is currently the natural technical Resistance. During the first part of this V-Shape, the market was on a Bearish Phase and as you see, a Lower High trend-line was dictating the direction (pivot). Bitcoin only went above that trend-line twice (the first being a huge fundamental push in October 26, 2019 after China's President bullish speech on blockchain technologies).
Similarly after the March (COVID fueled) bottom, BTC started the second part of this V-Shape, entering a Bullish Phase, using a Higher Low trend-line as its underlying pivot. The price has (so far) only went below this trend-line once, and today it hit (and marginally broken) it for the first time since September 03. A wick is not sufficient here, we need to see at least another candle above it.
** The RSI ** Perhaps the most interesting (and important) element on this study is the RSI. As seen (on the 1D chart), since October 27, 2019, the RSI has been always reaching a trend-line, where after making a Higher High, it reversed. This is perhaps the most consistent indicator for Profit Taking on this 12-month span.
There is still some room left for BTCUSD before reaching this RSI Higher High trend-line. Will you hold your buys until then? Feel free to share your work and let me know in the comments section!
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I bought last night again at 1126, in anticipation of this, had a strong inclination that BTC community was largely unaccommodating in their charts of the corporations that have just made large investments, protecting their reputations, and standing United as you saw PayPal’s earlier news, could not have been timed in a more fitting slot. Also the public, I trade daily on the NASDAQ, and every stock even peripherally associated with BTC are up and have been since Jack Dorsey from square made his showing, I track, and own them. The public is hungrier and more intrigued for this than many would imagine.
I’m buying more after I finish typing, if you want to see the price go up, you gotta slap the ask...
I enjoy your coverage. Thank You
TradingShot
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@johnmcal3, Well done John! And thank you for your supportive words!
cyberluck
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@johnmcal3, When everyone's getting in is the time to get out and when fear takes over, is when you should get in. Watch your backs people...BTC is so unpredictable...I got lucky, so lucky...the more you know about BTC, the more you fear it it's beyond rigged. So always question your logic, especially when it's too obvious so you don't get played.
johnmcal3
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@cyberluck, Good word man, that is sound logic you’re dropping, and seems like from a man whom has seen with his own eyes. I too hold even my most relied upon bits of information I find important in life loosely, because like you I understand that there is always some factor that I am unaware of, and could not account for given 1000 years, always at play, that’s just the nature of life’s complexity, but it is in that recognition and humility that we can find bits and pieces of what’s worthwhile that can point us towards what we seek. I too constantly, if not in a debilitating manner, question myself, but I have also found, sometimes the only way to find out if what your thinking is in line with reality, their is only one way to find out, and I do that by putting my money, only what wouldn’t cause me to flinch if I lost, where my mouth is... I will follow you, you seem like you have some experience that it would benefit me to glean from.
Pro_Trader_HTBB
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" and everyone must be wondering one thing: "How far can this rally go? Is it too late for me to jump in?"."
Nope, not everyone. Some traders on here actually do have a clue, they just aren't the 'top' or 'premium' analysts that you expect.
TradingShot
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@HowToBuyBitcoindotnetdotau, From the whole analysis that's what stood out in your mind?
pennywise_the_sage
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Most of the folks said it's going down. But actually it went up and YOU NAILED IT.
TradingShot
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@pennywise_the_sage, Thank you. That volume spike was such a strong indicator. I hope you made good profit off of it.
tixal
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Couldn't you read it as bearish divergence as well?
TradingShot
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@tixal, What exactly is waving a bearish divergence? and on which chart?
I’m buying more after I finish typing, if you want to see the price go up, you gotta slap the ask...
I enjoy your coverage. Thank You