Bitcoin / EuroViés de baixa
A lot of people are saying bull race for BTC, but...
Hello again wonderful person!
Hope you all had as interesting and bullish period as BTC saw these last days, but I hope your RSI is not as divergent as BTC.
There, I already gave away my short answer on BTC; but please allow me to tell you a little more into it.
As always my chart is from Coinbase and with 4h candles and BTC/Euro pair.
Changes
- Removed both of previous trend lines triangle
- Added resistant line at 8016 Euro, coloured yellow
- Added new support line at 7853 Euro
- Drew up trend lines at Stochastic and RSI to visualize
Conclusion
The price of bitcoin had a significant burst in price the last 3 days, and a lot of TA people tend to say that any significant burst in price is indication it will come down just as hard for correction.
Those of us that has been in BTC market for some time, like back in pre 2016, know that BTC does not follow the same laws of gravity that other markets do, hence it does not need to go down as hard for correction. It could in theory and from previous experience just continue up for quite some time.
With that past experience burned into my mind, that BTC can indeed break the TA laws of price gravity, I am very cautious and tend to look at indicators to see:
If you look at the chart on the RSI of the 14, Jan and RSI on the 17.jan, you will see a divergence. The price is higher, but the RSI top is lower; which scares me a little.
The stochastic and the Coppock looks like the momentum is not that strong, and neither is the volume. Yes, the Volume spikes in intervals but is not consistent, which may indicates it will not be able to sustain a top.
I do not believe the price will hold, but have a correction; and based on that predictions I have rebalanced my portfolio to: 10% Ether, 10% BTC and 80% TrueUSD.
I am waiting for that correction, and then make a new rebalance. If I were to guess the level of correction: 7350 or 6900 Euro.
Please, do not take my predictions as financial advice, and always make your own evaluation and TA before any trades. Also, have an exit strategy for all entry strategy you have in any markets, and be true to them!
Wish you all a splendid evening and happy hunting!
Hope you all had as interesting and bullish period as BTC saw these last days, but I hope your RSI is not as divergent as BTC.
There, I already gave away my short answer on BTC; but please allow me to tell you a little more into it.
As always my chart is from Coinbase and with 4h candles and BTC/Euro pair.
Changes
- Removed both of previous trend lines triangle
- Added resistant line at 8016 Euro, coloured yellow
- Added new support line at 7853 Euro
- Drew up trend lines at Stochastic and RSI to visualize
Conclusion
The price of bitcoin had a significant burst in price the last 3 days, and a lot of TA people tend to say that any significant burst in price is indication it will come down just as hard for correction.
Those of us that has been in BTC market for some time, like back in pre 2016, know that BTC does not follow the same laws of gravity that other markets do, hence it does not need to go down as hard for correction. It could in theory and from previous experience just continue up for quite some time.
With that past experience burned into my mind, that BTC can indeed break the TA laws of price gravity, I am very cautious and tend to look at indicators to see:
- Is there any divergence on the RSI up against the price?
- Is there any divergence or indications on Stochastic?
- What is the momentum in the Coppock Curve?
- What is the momentum in the Lark Laguerre?
- Last but not least....trading volume!
If you look at the chart on the RSI of the 14, Jan and RSI on the 17.jan, you will see a divergence. The price is higher, but the RSI top is lower; which scares me a little.
The stochastic and the Coppock looks like the momentum is not that strong, and neither is the volume. Yes, the Volume spikes in intervals but is not consistent, which may indicates it will not be able to sustain a top.
I do not believe the price will hold, but have a correction; and based on that predictions I have rebalanced my portfolio to: 10% Ether, 10% BTC and 80% TrueUSD.
I am waiting for that correction, and then make a new rebalance. If I were to guess the level of correction: 7350 or 6900 Euro.
Please, do not take my predictions as financial advice, and always make your own evaluation and TA before any trades. Also, have an exit strategy for all entry strategy you have in any markets, and be true to them!
Wish you all a splendid evening and happy hunting!
Happy hunting and stay safe!
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