BCN - Don't buy more just yet (and why I hate flags)
Updated
All,
BTC is of course gathering a lot of attention. Looking at the chart you can see a nice pretty "bull flag" forming - almost textbook. This times nicely with the overall market as FUD grows about Futures launch today and next week. It's a pretty logical consolidation time as weak hands drop coins and strong hands pick them up (my suspicion, at least).
If you are looking at opening a position on BTC, I would wait until we see some sort of move out of this downward channel. A more aggressive trader / holder can enter as soon as we get a confirming 1h/ 2h candle out of the upper trend-line, and a more conservative trader / holder can enter as soon as we break the flag and get a new ATH.
I hate flags on chart analysis because all they really are is a short-term bear channel, and so many people will tell you to buy the flag. It's horrible advice. The short-term channel could easily continue on, breaking the pattern and losing you thousands. This is why you should ALWAYS wait for a confirming signal before entering a new position.
BTC is of course gathering a lot of attention. Looking at the chart you can see a nice pretty "bull flag" forming - almost textbook. This times nicely with the overall market as FUD grows about Futures launch today and next week. It's a pretty logical consolidation time as weak hands drop coins and strong hands pick them up (my suspicion, at least).
If you are looking at opening a position on BTC, I would wait until we see some sort of move out of this downward channel. A more aggressive trader / holder can enter as soon as we get a confirming 1h/ 2h candle out of the upper trend-line, and a more conservative trader / holder can enter as soon as we break the flag and get a new ATH.
I hate flags on chart analysis because all they really are is a short-term bear channel, and so many people will tell you to buy the flag. It's horrible advice. The short-term channel could easily continue on, breaking the pattern and losing you thousands. This is why you should ALWAYS wait for a confirming signal before entering a new position.
Note
Bitcoin broke out of that downward channel and is now forming a second, smaller bull flag. If it breaks this bullflag and also breaks its ATH consider that your buy signal if you're a conservative investor. Aggressive investors should have already entered their positions.Note
So if you caught that nice ride and you're swing trading, be looking for an exit again. The volume and RSI decreasing here is concerning. I would expect at least one more drop to anywhere between $1400-1600 before a reversal will happen (if it happens).
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