BTC/USD Daily Analysis
Price Feed: Bitstamp
Daily Trend Mode: < Bearish >
Bollinger Bands: Upper 2,793 / Middle 2,397 / Lower 2,001
(20 bars, 2 Standard Deviations, Simple)
Price Watch: 1,850 / 1,641
(May 16th, May 27th Lows)
Summary
That was a rather nasty slide. As mentioned in the last update when we were trading around 2,040's, I was bearish and advised fading any rallies.
That turned out to be a rather good move.
Now that we've hit a low that met the first pricewatch target, it would be tempting as a new trader to start accumulating here. However, my indicator sets haven't given the "green" signal to get back in - so I'm viewing this bounce as something reactionary until they do.
We're still in a Bear mode on the Daily timeframe, even if we get a bit of positive action on the shorter term charts. Having seen and participated in many decline scenarios, it wouldn't surprise me to get an arcing bounce and then extend the fall on another leg down.
In any event, it would be dangerous at this time to go long -- unless you are very aggressive and just can't wait. (Not that I suggest you do, but some trade on shorter timescales and are nimble enough.)
It still looks pretty heavy, so until my stuff starts to see some potential green, I'm going to stay away from trying to "catch the knife", even if it means I miss out on a portion of a potential up-move.
Remember, its about staying in the game, not over-trading on "gut feel".
Stay alert, stay smart - and good trading!
(c)2017 by TallTim - This information is provided for educational and informational purposes only. There is no implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The information contained in this post is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. You should not make any decision regarding finance, investments, or trading based on any of the information presented in this post without undertaking your own due diligence and consultation.