BTC/USD Daily Analysis
Price Feed: Bitstamp
Daily Trend Mode: < Flipped To Bull Mode >
Bollinger Bands: Upper 2,816 / Middle 2,404 / Lower 1,991
(20 bars, 2 Standard Deviations, Simple)
Price Watch: 2,938
(Recent Daily Highs)
Summary
As I've said before, that's why its called "trading" and not "winning" by default.
Having a plan is instrumental in this kind of market. While I was correct in that the 2,400 level would be instructive if broken through - my personal stance prior to this was more of a slump and possible downward movement. Certainly not the spike-to-the-sky that we've witnessed.
It is possible to be half-right. But then, having stops and limit orders to prevent trading plans from going completely off the rails is a good idea, and I always have my risk exposure in place.
The Daily is a frantic whipsaw of activity, if you squint at it, you can almost make out the inverted head-and-shoulders formation that resulted in the pop to new highs. (Totally in hindsight, which of course makes such patterns a bit useless for actual trading.)
It seems that the recent drama surrounding the August 1st deadline has been alleviated somewhat, and the market overwhelmingly agrees.
The good part is, this flips the indicator sets that I track on the Daily chart back into a Bull mode - which gives us some chance of progress in that area. I wouldn't discount a retrace to temper some of the recent expansion of volatility, but overall it should be possible to fade any declines and pick up some bargains in the process.
With the recent burst of activity, volatility has spiked and is prone to revert for a short while as money is moved and everyone collectively catches their breath.
Never a dull day in cryptocurrencies, be sure to have a contingency and multiple exchange accounts in case of downtime. Most exchanges in the crypto space are notorious for going down or being unresponsive during big moves. Having a backup certainly wouldn't hurt.
Watch those swings, 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.