Bitcoin Daily Update (day 336)
Disclaimer: If you are primarily interested in copying other people’s trades then this is not for you. However, if you are willing to put in the work that it takes to learn how to trade for yourself then you have found the right place! Nevertheless please be advised that you can give 10 people a profitable trading strategy and only 1-2 of them will be able to succeed long term. If you fall into the majority that tries and fails then I assume no responsibility for your losses. What you do with your $ is your business, what I do with my $ is my business.
Click here for my Comprehensive Trading Strategy | Click here for my Comprehensive Trading Process | Click here to learn about the 2 BTC' to 20 BTC' Trading Challenge
Consensio: S EMA < M EMA > P > L EMA
Patterns: Phase 7 Hyperwave | A&E | Bear Channel
Horizontals: S: $3,729 | R: $3,823
Trendline:
Parabolic SAR: W: $4,230 | D: $4,180
Futures Curve: Backwardation
Candlestick Analysis: Dragonfly doji
Funding Rates: Longs receive 0.027%
BTCUSDSHORTS: Broke down horizontal support but appears to be finding support from daily R9
TD’ Sequential: G1
Ichimoku Cloud:. Bullish TK Cross | Bullish Kumo Twist | Today’s selloff found support at the top of the cloud, and closed above Kijun-Sen - very interesting!
Relative Strength Index: Amazing how quickly it can go from overbought to middle of the range. Supporting above 50 is very interesting!
Average Directional Index: ADX continues to trend with +DI > -DI (although they are converging)
Price Action: 24h: -0.2% | 14d: +5.6% | 1m: +11%
Bollinger Bands: Is bullish, selloff closed above MA - very interesting!
Stochastic Oscillator: Is trying to make bullish crossover on daily. Weekly bullish was confirmed by breaking above 20.
Summary: I cannot remember the last time when the price of Bitcoin has been this interesting. It has me so close to opening a trade in either direction. In day 335 I said I would be looking to go long if we breakthrough $3,922 and said I would be ready to change my disposition if price remained below the 4 & 9 EMA’s while getting a bearish cross and broke the daily Parabolic SAR.
This is a great example of fickle trading can and should be. This is also a great example of why to wait for the candle to close. Today the price broke the daily SAR and got a bearish cross with the 4 & 9 EMA’s with the price below and I entered a stop order to long BTCM19 at $3,802 with a stop at $3,574.
After that sharp selloff occurred we quickly rebounded and made a very bullish close with a dragonfly doji above very important areas (50 EMA, Kijun-Sen, and Bollinger Band MA). That was very bullish as far as I am concerned and wreaks of a shakeout before a breakout. If am wrong then hopefully my stop order will not trigger. If I am right then I expect price to blow right through that area which is exactly when / where I like placing stop market orders on high liquidity exchanges.
Under the ‘trendline’ line item above there is a chart that I am watching closely. If we can breakthrough the top of that bear channel then I will be calling for $5,800. If we can’t then I will be calling for a return to Phase 1 ($1,160) by Q2 2019.
Click here for my Comprehensive Trading Strategy | Click here for my Comprehensive Trading Process | Click here to learn about the 2 BTC' to 20 BTC' Trading Challenge
Consensio: S EMA < M EMA > P > L EMA
Patterns: Phase 7 Hyperwave | A&E | Bear Channel
Horizontals: S: $3,729 | R: $3,823
Trendline:
Parabolic SAR: W: $4,230 | D: $4,180
Futures Curve: Backwardation
Candlestick Analysis: Dragonfly doji
Funding Rates: Longs receive 0.027%
BTCUSDSHORTS: Broke down horizontal support but appears to be finding support from daily R9
TD’ Sequential: G1
Ichimoku Cloud:. Bullish TK Cross | Bullish Kumo Twist | Today’s selloff found support at the top of the cloud, and closed above Kijun-Sen - very interesting!
Relative Strength Index: Amazing how quickly it can go from overbought to middle of the range. Supporting above 50 is very interesting!
Average Directional Index: ADX continues to trend with +DI > -DI (although they are converging)
Price Action: 24h: -0.2% | 14d: +5.6% | 1m: +11%
Bollinger Bands: Is bullish, selloff closed above MA - very interesting!
Stochastic Oscillator: Is trying to make bullish crossover on daily. Weekly bullish was confirmed by breaking above 20.
Summary: I cannot remember the last time when the price of Bitcoin has been this interesting. It has me so close to opening a trade in either direction. In day 335 I said I would be looking to go long if we breakthrough $3,922 and said I would be ready to change my disposition if price remained below the 4 & 9 EMA’s while getting a bearish cross and broke the daily Parabolic SAR.
This is a great example of fickle trading can and should be. This is also a great example of why to wait for the candle to close. Today the price broke the daily SAR and got a bearish cross with the 4 & 9 EMA’s with the price below and I entered a stop order to long BTCM19 at $3,802 with a stop at $3,574.
After that sharp selloff occurred we quickly rebounded and made a very bullish close with a dragonfly doji above very important areas (50 EMA, Kijun-Sen, and Bollinger Band MA). That was very bullish as far as I am concerned and wreaks of a shakeout before a breakout. If am wrong then hopefully my stop order will not trigger. If I am right then I expect price to blow right through that area which is exactly when / where I like placing stop market orders on high liquidity exchanges.
Under the ‘trendline’ line item above there is a chart that I am watching closely. If we can breakthrough the top of that bear channel then I will be calling for $5,800. If we can’t then I will be calling for a return to Phase 1 ($1,160) by Q2 2019.
emasar Indicator is available for purchase at alphanalysis.io/product/emasar/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.