More and more people wondering if we hit a bottom of a correction. It is now or Bitcoin have to go through another bloodbath?
Yesterday Bitcoin had reached another significant low at $9863 and this low is on the same equiv potential line EP780 as the previous significant low at $9231. This two lows have same potential and they form a double bottom pattern despite they are not at the same price. The higher height between lows is at $12000 and this is a viable target for price in coming days.
If we assume that both significant lows are on the same potential a divergence between MACD and RSI can be verified and this is a sign that price can move south. At last low we also have an increase in volume that is sign that bulls are back in business and bears have to take a break and leave some ground to the opposite team.
Here is our trading report. Bitcoin tanked yesterday so I stop trade on BTC at $10680 and book a loss of $1.373.
Our strategy for the next trade will be to buy at $10100 and sell at target T1 1/3, at T2 1/3 and at T3 the last 1/3 of our investment. Stop loss level is set just bellow the second low at $9600 (but not to close for not to be trapped in bull trap)
We just hodl the DASH and LTC positions, because correlation between them and BTC it high and they will follow the BTC price.
It is not a great feeling to lose a trade. Your pride can be hurt. But the most important thing is that you don't hang on wrong ideas and hope that price will eventually follow your ideas. Price have it's own mind and is sometimes highly unpredictable. In our case it will be safer to wait that the price climb up to $11000 and rise over the Ichimoku cloud and than start the trade. I risking a little in starting to early, be trapped in bull trap or swiped out by a sudden impulse in south direction, but I'm willing to take a risk because I believe in my predictions and the biggest fun is when your predictions become true.
Sometimes this is even a bigger reward than the money earned.
Don't forget to check out this new TFDSRE thing Elliott waves are not the only thing, you can surf on: #1, #2, #3, #4.
Previous analysis: #24, #25, #26, #27,#28, #29, #30. Is good to check them out to get insight into my reasoning.
Image sources: Investing.com,
Data sources: Bitfinex exchange
Disclaimer: If you use my ideas and analyses in your investment ventures, you take all responsibility and consequences about your actions.
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Check also technical analyses from TAF squad: @pawsdog, @futuristgear, @exxodus, @allthereisislove, @lordoftruth, @ew-and-patterns, @toofasteddie, @gazur.
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