Zone of Turmoil & a BFXData observation share
Updated
Bitcoin failed to close above $7200 during this most recent consolidation period. It has now fallen below $6900. If it was going to launch and make a bull comeback, then it would have happened already so those who claim it's going to launch now are just engaging in wishful thinking. Usually when there is a reversal in bitcoin it happens immediately, not drawn out over days.
I am not going to suggest a price target because we are now entering a zone of turmoil. There will be mass confusion, particularly by the overly bullish and those who are facing fear and despair over losing their initial investments. People will want to buy at any level between here and 6k because they want to believe this is the bottom. And maybe it is? But bitcoin is an entity unto itself that even the biggest whales can't control once the momentum gets going. All I know is that if we break below the dark green channel support, it's not going to be pleasant.
If you look at the weekly charts btc is still a fair way off returning to the "mean". I wouldn't be surprised if we do fall to 5k or less as some predict. However in terms of this "death cross" that occurred on 31 March 2018, I do believe it will be a temporary situation. The 50/200 Moving Averages will cross back after we plummet a bit further. Crypto is too new and too big now to enter a long term bear market. Even though governments and banks are against it, who do you think is buying up in droves? Ironically, crypto is bad but money is good and no power/control hungry entity is going to give up a chance to both make money and control the global population further.
So following on from yesterday's BFXData knowledge share (which are my personal observations), here is the one for today:
What do the BFX bots know:
They know that the idea is to accumulate everyone else's bitcoin/money.
They know how the main indicators work. They don't use them because they don't need to visualise them, but they know that everybody else uses them and so are calculated by the bot server to be taken into account with every trade strategy.
They know that candles are significant to humans and so the movement of price in each minute ultimately determines the direction of the trend.
They know that humans make decisions based on the closure of candles on certain time frames. For example 1 day, 4 hour, 2 hour, 1 hour, 30 min, 15 min, 5 min, 1 min. More weight is given to candles closing on bigger time frames.
They know that market psychology ultimately drive
MACD
Sometimes when the MACD is around the 20 (low trading volume) to 40 (high trading volume) mark in either direction, the bots will stabilise the price (buy and sell walls at 10 cent differences) to move the MACD to the neutral or opposite areas based on what the overall whale strategy is. The price will not move significantly, but the MACD will. This is calculated divergence (just coined). This usually only applies to 1/3/5 minute time frames. Larger time frames are often normal market trends. While the MACD is undergoing this normalisation process, if the price moves beyond what the bot wants the price range to be (usually +/- $20), the bot will buy or sell the price back to what it wants. You can see these small reversal candles on the one minute time frame. Sometimes it takes the bot a little while to react, maybe 30 seconds. This is also a method to prolong the closure of the current candle in order to make the next candle appear to be more green or red. Once the MACD lines start to overlap, large buying/selling movement in the preferred direction will begin again.
I am not going to suggest a price target because we are now entering a zone of turmoil. There will be mass confusion, particularly by the overly bullish and those who are facing fear and despair over losing their initial investments. People will want to buy at any level between here and 6k because they want to believe this is the bottom. And maybe it is? But bitcoin is an entity unto itself that even the biggest whales can't control once the momentum gets going. All I know is that if we break below the dark green channel support, it's not going to be pleasant.
If you look at the weekly charts btc is still a fair way off returning to the "mean". I wouldn't be surprised if we do fall to 5k or less as some predict. However in terms of this "death cross" that occurred on 31 March 2018, I do believe it will be a temporary situation. The 50/200 Moving Averages will cross back after we plummet a bit further. Crypto is too new and too big now to enter a long term bear market. Even though governments and banks are against it, who do you think is buying up in droves? Ironically, crypto is bad but money is good and no power/control hungry entity is going to give up a chance to both make money and control the global population further.
So following on from yesterday's BFXData knowledge share (which are my personal observations), here is the one for today:
What do the BFX bots know:
They know that the idea is to accumulate everyone else's bitcoin/money.
They know how the main indicators work. They don't use them because they don't need to visualise them, but they know that everybody else uses them and so are calculated by the bot server to be taken into account with every trade strategy.
They know that candles are significant to humans and so the movement of price in each minute ultimately determines the direction of the trend.
They know that humans make decisions based on the closure of candles on certain time frames. For example 1 day, 4 hour, 2 hour, 1 hour, 30 min, 15 min, 5 min, 1 min. More weight is given to candles closing on bigger time frames.
They know that market psychology ultimately drive
MACD
Sometimes when the MACD is around the 20 (low trading volume) to 40 (high trading volume) mark in either direction, the bots will stabilise the price (buy and sell walls at 10 cent differences) to move the MACD to the neutral or opposite areas based on what the overall whale strategy is. The price will not move significantly, but the MACD will. This is calculated divergence (just coined). This usually only applies to 1/3/5 minute time frames. Larger time frames are often normal market trends. While the MACD is undergoing this normalisation process, if the price moves beyond what the bot wants the price range to be (usually +/- $20), the bot will buy or sell the price back to what it wants. You can see these small reversal candles on the one minute time frame. Sometimes it takes the bot a little while to react, maybe 30 seconds. This is also a method to prolong the closure of the current candle in order to make the next candle appear to be more green or red. Once the MACD lines start to overlap, large buying/selling movement in the preferred direction will begin again.
Note
The MACD stabilisation is happening this very second on bfxdata if you want to have a look at a real life example (one minute time frame).
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