Last update was in March? Wow. What’s been happening? Well, Bitcoin isn’t trading still at $5,000 that is for sure. Bitcoin price headed north and broke through the major resistance at $9,204.20.
On the 1st of June Bitcoin hit the top major resistance point of $10,373.75 and hasn’t made any attempt to break through since.
Life has been a little bit upside down since the beginning of the whole Coronavirus issue for me back in March. I am now, like so many others, trying to regain some normality and will update frequently again.
Have I still been trading? Hell yes! I’ve still been following Bitcoin and selected AltCoins, daily – It’s my addiction!
I believed for a long while that these movements were fairly random and there must be some sort of luck involved in managing to work out where to place a buy or sell trade. I considered it to be ‘trading bots’ automatically knowing when to trade.
However, I have a very determined personality and refused to give up looking for the “key” to trading. These movements were too structured to be just luck.
If only I could work out what this is doing, where is it going?
After months of searching I actually found a pretty effective way.
Somebody called Ralph Nelson Elliott, who was a lot smarter than me, worked out that that all tradable assets on the stock market move in waves. This was I believe in the 1930’s way before the time of Bitcoin and cryptocurrency.
The good thing for us though is that the same trends still occur in cryptocurrency trading. Why? Well, it is all to do with everyone looking at the big chart together.
When we’re all working out our support and resistance lines, and looking at channels etc, we’re all buying and selling at particular points.
This creates a “wave” effect and equals an increase in price and retracements.
Now that we have established a price direction using cryptocurrency indicators, we’re going to have to see if this direction is following any trading trends.
Bitcoin, similar to the stock market, has certain ways in which the value is traded. Imagine there is a big chart and everyone has seen a trend together and are following the same lines and levels. It is this that we need to identify as well.
Just a brief daily mind stretch. Trying to see if I can identify Bitcoin support and resistance.
Feel free to add a comment if you see anything I miss.
Not financial advice. I’m just trying to work out the overall direction for Bitcoin in the near future.
(This is just for fun) Remember; Bitcoin is a highly volatile beast and has the ability to change direction, in seconds.
Always use a stop loss!
Please note: I am neither bull or bear. I trade either direction, it’s all about the money, baby.
Daily (Yellow) Higher Fib resistance $10,225.32 Lower Fib support $8,931.10
Major resistance at $10,373.75 (Purple) Major support at $9,052.56 (Blue)
Opening price: $9,341.08
I’m going to simplify the way I do trading. Whilst I will still continue to use this TradingView chart for reference I will be relying on using MA (Moving Averages) lines instead.
This will be my last update on this post today. I will start a new one that will replace this as a ‘sticky’ topic. Since the beginning of the Coronavirus lockdown I have been using the much more simplified MA lines. This is mainly because I haven’t had as much time to monitor every move of Bitcoin due to other commitments.
I have found this new strategy to be highly effective without being so time consuming, and as a plus for anyone following this, it will be easier for everyone to follow.
I will still be looking for trends using my full TA but will only publish my TradingView chart when it is really required.
So, for the last time for a little while here is my TradingView analysis: