So bitcoin and many of the other cryptocurrencies that found themselves in downtrends the past month or so (I'd call it consolidation but let's not get picky about terminology just yet). After a brief retest of the old 1800 USD level of support on Sunday (image above), we've seen quite a rally (50% or so). Whether this is driven by short covering or speculative buying of the dips (or a little of both) I can't say. I will say I'm kicking myself for not loading the boat Sunday and I now expect a retest of the big 3,000 pretty soon at the rate we're going. I'm not here to analyze current events and effects on price, merely using simple charting technique (support and resistance levels) to try and predict what the price might do and where a decent entry might be for a short term trade or longer term hold even.
In the second chart I've condensed the view to 1 month and you can see I've labelled the 3 major levels of support / resistance at 2750 and 2640 which will be key to price action today. XBT already dropped below 2750 as this was a large, fast move and If XBT falls below 2640, we can probably expect a retest of lower levels of support. I'd love a chance to enter around 2275 area (shown as bottom line in green in chart above) but let's not get our hopes up as this appears to be a pretty strong move up. It could retest the 3,000 level as early as next week but I expect a bit of consolidation / retracement of this move up over the weekend as people take profits from recent entries.
When I have a little more time I'd like to get into other basic charting / technical analysis terminology and explore some of the other popular currencies, price action, and what it could mean going forward.
I'm not a professional trader, just an engineer who loves trading stocks, options, and whatever else I find fluctuates a lot. I've fallen in love with the crypto currency market as it's a new frontier and it has wild price swings like penny stocks and options do and it also has potential to make one rich if you hold a currency long enough.
If you find this content useful / interesting please follow me as there will be more to come.
Happy trading / investing or whatever it is you do! Time to go to work....
What happened this week in the crypto and world market:
https://steemit.com/main/@az-charts/recap-what-happened-this-week-in-the-markets-steem-price-bitcoin-price-analysis-in-all-markets
A good analysis on bitcoin:
https://steemit.com/bitcoin/@az-charts/bitcoin-below-2500usd-and-it-s-crashing-needs-to-keep-up-the-pace-3300usd-early-target-or-monthly-weekly-daily-view-21-july-2017
Cool man! I really like the analysis. I do my own BTC price forecasting and use Fibonacci Retracement make my predictions. Check me out here plz https://steemit.com/bitcoin/@hotsauceislethal/bitcoin-price-forecast-7-21-17 I just wrote a new one a few hrs ago
Yes the fib extensions will be key to analyzing / predicting BTC price action once it does clear the $3,000 mark as there's no history above that point. I saw someone had done some predictions about ethereum retracement from the move up to $400 using fib levels and he nailed his short trade (if he entered and exited when he said he was going to). Glad you enjoyed the analysis! I like doing stuff like this in my spare time. I'll check out your thoughts as well.
I predict it will break $3000 this year..
I totally agree! This fast V-shaped drop / recovery reminds me of when the major indices (S&P, DOW) took a dump in February 2016 due to the oil price rout and then recovered quickly and surged to new highs. I think we'll definitely see 3k by end of year if not the end of this month! What a wild week!
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