BTCUSD Technical Analysis UPDATE @ $8313 - Feb 11th 2018

See previous post: https://steemit.com/bitcoin/@jagr/btcusd-technical-analysis-update-usd8920-feb-9th-2018

I mentioned I was scaling down from ETH as I was seeing a potential correction right around BTC's 9000 level and further chop-chop from BTC. And well, we gone through a little bit of a correction..and now we're seeing some chop going on. Well, when are we done?

I don't know.

Right now, at least in my own trading style, where I'm looking for breakouts and dips/retests or bounces all off of significant horizontal support and resistance, now is the time to watch and be patient.

I did miss a potential buy opportunity at $7800. But, right now I want to keep some more fiat..just in case. I doubt we're not done seeing BTC hit $7800.

Let's take a look at the 4 HR with my usual mess of indicators (I apologize).

Okay, so what then are we looking for

I need volume and volatility to trade this style. So, let's take a look at the 4HR again but with Bollinger Bands.

Those edges of the BBs are a measure of standard deviation of BTC's price action from a 27 day moving average (I could have chosen a cleaner MA, but I like 27 on BTC as it shows overbought/oversold events fairly well, looking back that is).

So, what am I using the BB to illustrate?

I'm looking for a squeeze of the BB edges (i.e. for the Bollinger Bands to close in on price action). It won't tell me when, but it will give me a good idea of possibly when volatility will come back to BTC.

You may have heard this before, but imagine your hands as the two BB edges, squeezing on a bar of soap.
The harder you squeeze, the further the soap will fly when it slips from your hands.

And right now we are slowly closing in.