Technical Analysis:
- Bitcoin BTC/USDT on track to hit $5000 - See LINK for 8/9/2018 for original hypothesis
- NO CHANGE - targets are being hit within a very close range
- BTC hit the resistance (Pink downward trend line) at $7392
- The secondary target was set as a potential extended wave 5, where I thought BTC would only have enough momentum to hit $7200, it almost hit $7400
- There was a strong bearish divergence between price and the RSI - as the price went up, the relative strength index weakened and has been a very strong indicator of price reversal all year
- Once we breached below $6800 and hit $5700, the corrective B wave up to the $7000 level was expected
- The 1 hour and 4 hour RSI is still very oversold - but the daily RSI is still neutral and bounce up to the $6800 level is a potential long opportunity if $6400 holds (corrective wave 2 in the C wave down)
- The drop today was only the first wave of five, on the way down to the $5000 level
INVESTOR NOTES:
To be clear, these notes are from the perspective of a day/swing trader. The notes above are not applicable to long term investors. Corrective price action and intermediate spikes in this market are of little or no consequence to anyone holding for long term for larger percentage gains.
- If you are an investor for the long term, all of these prices are great buy zones
- Buying at $6000, $8000, or even $9000 is of little or no consequence when you believe the price of Bitcoin will one day be $50,000 and beyond
- Good investors will accumulate over time, constantly cost averaging their positions, with confidence that current market prices do not represent the true value of the asset in the long term (anywhere from 6months - 4 years)
- Bitcoin and Cryptocurrencies are still in its infancy as an asset, with only a few hundred billion in its total market cap - as compared to the trillions in the majority of all other asset classes
- Patience is key
- I am a long term BULL
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- LITECOIN: MNwqCX6HoU6MeU9SRwNakT3iHEkfrig2YB
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- BINANCE: 0xcaf1e0cd3de21a7d27497a95f8196f74a073ad76
- ETHEREUM: 0x4c8d59799E6EF1faE64Bc40D1668B77DD8d5e9Ed
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LEGAL DISCLAIMER:
I am not a financial advisor, nor is this post intended to be financial advise. I encourage you to do your own research before investing, or trading, any coin, token, stock, or security. This blog is intended for me to document my own personal analysis, charts, thoughts, opinions, trading decisions, and experiences. If you would like to learn more about trading, cryptocurrencies, and the resources I utilize to trade and invest, see my previous post - LINK.