To start off a new set of articles, let us start with a strategic, long term, look at trading Bitcoin. First we need to look at the daily Bitcoin chart:
We can see that the meteoric rise of Bitcoin led to consolidation at a price much higher than what it had previously been trading at. Of course, the interesting thing about this chart we see when adding dates:
This was in 2014/2015! This means that the previously shown meteoric rise was here:
Zooming in on our current position, because that is what we really want to talk about, we see this:
This is a similar pattern to the previous run-up when we hit 1K and the consolidation after that. What we are looking at now is a similar consolidation. Where new groups of people are discovering what crypto is and, the very early adapters are still holding on and people who came to the party late are taking their loss or impatiently waiting for the next rise.
We have seen the @BTC price knocking on the 10K USD door multiple times and retracements down have been getting increasingly small and fast. We know that people are predisposed to round numbers and 10K is a very strong one. What can be expected now is that we will hit this ceiling at increasing rates until we break through. You can expect that day traders are setting their sells just below the 10K, which is what creates this ceiling, and then buying back on the retrace. This has been profitable over the past few weeks and should remain so until we break through.Market makers, or people who set orders are mostly accumulating which is leading to the current pattern.
For daytraders you would want to look at these ranges and trade within them.
Buy when the price is in the lower bands and sell when we get higher towards the 10K USD and make a profit.