I’ve been keeping an eye on the weekly chart of Bitcoin and some other big cap coins. Starting this week they all looked a bit extended and I was 50/50 on whether price would push higher.
For a while price did, but with the sell off in recent days you can see price is digesting the prior move (or maybe purging).
A Bigger Picture
Looking at this weekly chart of Bitcoin we see what is a huge reversal type candle that will be formed unless we get a sick rally in the next 8 hours.
That upper wick is one of the biggest I have seen and shows sellers came in hard above the 11,500 area, which ironically was my upside profit target when BTC pushed above 10k.
It’s hard for me to get long when seeing this type of price action on the larger timeframe.
There was a rule that I was taught often back when I was a full-time equities trader.
Larger Time Frames Dominate
Conclusion
This is not to say price cannot go higher in the near-term. In fact price could rally 1k or more points and still technically not breach the reversal candle.
It is a warning signal though – that price has a higher probability of moving lower before it moves higher over the next week.
I’m trying to decide if I want to lighten my BTC position or not to be honest.
In yesterday’s update, I told you bitcoin looked ready to make a larger move. Since that time, we’ve seen it drop over $1,000. Price found some support at the ascending support line we’ve discussed.
Zooming out on the weekly chart, we can see we’re still trading above the upper Bollinger band. I’d like to see this week’s candle close above $11,500 later today. That would denote a major break above the prior resistance set back in January/February of 2018, which would likely signal continuation to the upside. As of now price has dropped below $11,500, trading at $11,100 on Coinbase.
In today’s video I discuss, where price may go from here, traps to avoid, key areas to watch and so much more. I hope you find it helpful.
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading.
Workin
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In Elliott Wave terms, TokenCard began a wave one advance on January 28. The red wave one (blue sub-waves i-ii-iii-iv-v) finished on March 1, and the red wave two (blue sub-waves a-b-c) correction ended on May 20. If this wave count is correct, TokenCard should be heading next towards the March 1 peak in the red wave three.
Bitcoin has been on a tear in the past week – ripping up then right back down again -volatility is certainly back! The bull trend seems confirmed though sharp/steep corrections are in order. The ALTS have been savaged but their day in the sun will come in due course. Beware leverage in such market conditions!
Much of this week’s recap focuses on examining BTC’s recent price action. There’s certainly a lot to discuss.
Picks of the Week
Blowing my own trumpet – the conclusion to the Riding the Bull mini-series is worth your time. Also the video breaking down the current trade dispute between China and the US is very informative.
A sit up straight week for crypto -gripping / exhilarating and of course, just a little bit stressful (especially if you are holding ALTS). Until next time. As always, looking forward to your comments and suggestions.
Note on Sources:
Twitter & Reddit (cryptos current meta-brains) / Medium / Trybe / Hackernoon / Whaleshares / TIMM and so on/ YouTube / various podcasts and whatever else I stumble upon. The aim is a useful weekly aggregator of ideas rather than news. Though I try to keep the sources current – I’ll reference these articles and podcasts etc. as I encounter them – they may have been published just a couple of days ago or in some cases quite a bit earlier.
When the price of a coin is pushing ever higher people get excited and want in on the action. I suppose that is when the FOMO kicks in.
Vertical Line Equals Do Not Buy
The example for today happens to be ChainLink (LINK) which has ripped higher for several reasons, one of which is just being listed on Coinbase the other day.
Here is the chart from 10 hours ago – wow look at it go. I better get in it’s going straight to 10 right!?!
Here is a chart from the time of this post:
And that is why you don’t buy a coins that has gone vertical in price appreciation.
Bitcoin continues to consolidate within a tighter range. It looks like price may make a larger move over the next 24 hours. Daily volume remains healthy, but has dropped over the last 2 days.
In today’s video we’ll discuss where bitcoin’s next move may be, key areas to watch and so much more. I’ll also answer your direct questions after my analysis, which ends at the 14:40 mark in the video. If you’re not interested in hearing me address various comments and questions, you can stop the video there. I hope you find this helpful.
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading.
Workin
If you found this post informative, please:
Get paid for viewing ads and Support the Crypto Ecosystem with Brave Browser. Free download here: https://brave.com/wor485
V Systems (Bitfinex: VSYBTC) has broken out of the triangle pattern in the daily chart.
(Chart courtesy of Tradingview.com (log scale))
Elliott Wave Analysis
In Elliott Wave terms, V Systems began a wave one advance on January 18. The red wave one (blue sub-waves i-ii-iii-iv-v) finished on March 28, and the red wave two (blue sub-waves a-b-c) correction ended on May 14. If this wave count is correct, V Systems should be heading next towards the March 28 peak in the red wave three.
(Chart courtesy of Tradingview.com (log scale))
Funnymentals
V Systems is the blockchain database cloud by Sunny King, creator of PoS. You can watch their introduction
People who got in Bitcoin for the first time in the last 1-2 due to FOMO got burned again (just like in late 2018) when price collapsed on Weds.
Bitcoin soared as much as 39% this week to $13,852, the highest since January 2018. But it hit a brick wall around 4:30 p.m. New York time Wednesday, plunging more than $1,800 within about 10 minutes. Moments later, prominent cryptocurrency exchange Coinbase Inc. reported an outage on its consumer site, which was resolved in under an hour. Swings continued Thursday, with the coin anywhere from down 15% to up 4.8%.It was down
In my last update, I told you if bitcoin broke above $11,500, we would likely see it test at least $13,500 (0.618 fib level). Price spiked as high as $13,850 before finding major resistance. It’s now put in a 25% correction, dropping as low as $10,400 before finding support. It’s currently trading around $11,850 on Coinbase.
We’re seeing a major influx of volume. A daily volume high of just over $45 billion was set 2 days ago. Today’s volume is an impressive $40 billion.
In today’s video I answer many of your direct questions. We’ll also discuss where bitcoin may be heading
Bitcoin has certainly been active lately. I can’t always tell what it’s going to do next, but I do understand what it has been up to and the latest BTC movements have helped to refine and confirm my analysis methods. Let me show you what I mean.
I managed to call the latest dip slightly in advance.
This was just before noon (UTC) on Wednesday when BTC was at about $12500:
From https://twitter.com/brain_bit/status/1143801736827670529
For a while I thought I had it wrong as BTC pumped another $1000 northwards, but then it did correct.
As I said in “Altcoin Buying Masterplan (it’s working…)” two weeks ago, I have
