Bitcoin Price Analysis: Week of Jan 26 (Spotting a Trend Change)
Last Week we concluded with the following: We are turning short term Bullish here and are looking for prices to rise back to the vicinity of the breakdown level of US$250. When we get there, the most likely outcome would be more downside and if this downside has a quick reversal above US$200 we might be able to finally call the low. “Bitcoin does not need a Wall Street operated exchange, it just needs people to realize what Governments are doing to them economically, EU citizens are on deck.”
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Trends play an important role in trading, giving traders a chance to use patterns in the price data to make decisions based on more than simple rises and falls, or worse, gut instinct. But how does one identify and draw a trend on a chart? When looking at bitcoin price charts like the one below, you can't help notice how prices at times seem to move along invisible lines: This can be seen whichever chart timeframe you look at, be it weekly, daily or on a 30-minute chart: Trend lines and trend channels. The lines you see in the charts above are called 'trend lines'. However, it is apparent....
BTC price at press time: US$243.25. The midweek price alert began with: “Bitcoin has finally broken above the noted 50-day Exponential Moving Average (EMA) at US$232 and done so with force. It now also sits above the 100 day EMA (~US$242) as well. It’s possible a change of trend could be underway, but it is still too early to tell. This move has been made on very small volume and On Balance Volume confirms this. If the trend is truly going to change, volume should ideally come in.” The price reached a high of ~$256 and has now come down to ~US$243 and thus far the price has been....
Key Highlights. Bitcoin price after trading as high as 320.00 moved lower and broke an important support area. The recent break in Bitcoin is calling for a trend change, which is likely to call for more losses. Bitcoin price looks like heading lower, as sellers managed to clear a couple of important support levels. There was a solid upside reaction recently in the Bitcoin price, but once the price tested 320.00 there was a downside reaction noted. The price declined heavily and shredded more than 10% gains to trade below 280.00. However, there is one more major support area building on the....
After having been continuously forming an upward trend, Bitcoin’s price has undergone a powerful downward impulse. Will that affect further growth? The short-term upward trend continues. A sharp change in the trend indicates that the majority of the bulls did not expect a continuation of the trend at that point. The structure of the price is not formed enough for medium-term growth. Currently, the price is going upwards, but it’s also near a medium-term level, which it may bounce off again. The critical rebound level is the price with the largest trading volume, which is $418.5. The upward....
In technical analysis, traders interpret the head and shoulders formation as a strong sign that a trend reversal is in process. Traders tend to focus too much on timing the right entry to a trade, but very few focus on developing a strategy for exiting positions. If one sells too early, sizable gains are left on the table and if the position is held for too long, the markets quickly snatch back the profits. Therefore, it is necessary to identify and close a trade as soon as the trend starts to reverse.One classical setup that is considered reliable in spotting a trend reversal is the....