Bitcoin Finally Showed Some Major Strength & We Had A Record High Volume Day (Video)
Wow, this was an awesome day for Bitcoin and most cryptos really. We were first down a lot and tested the ground at 6000 but then we were able to recover and actually make gains as well. Here is the daily chart:
Comment: First of all, I want to mention the volume, today we actually had the highest volume day EVER for Bitcoin since we went above $1000. So, that is a major sign of strength. Im not saying that the danger is over by any means, but Im a little bit optimistic here again.
Alright, we also formed a very nice looking hammer for the day and we closed about 12% up which was very welcome.
In addition to that, we also closed above the important price level of 7450 which is the peak that function as support for Bitcoin so we had a lot of stuff to be impressed by today for Bitcoin.
In terms of my next target for Bitcoin, Im aiming for 9500 which is the little peak we had 4 days ago.
Now, lets finish up with a look at the area line chart. Here it is:
Comment: If you watch the video Im explaining how the steepness of the pullback has changed in stages and that we had a very steep fall during the last 9 days.
But when it comes to the next major hurdle to the upside it is a daily close above 11700 that we must surpass in the next attempt.
Happy investing!
I dont understand how u come up with the “highest” volume figure. Can u explain that?
It was the highest volume ever on Bitstamp since we went above $1000. So clearly a sign of strength. However, it remains to be seen if this will be enough to turn this ship around, but you couldnt ask for anything better when it comes to the volume.
Can u show? To me it looks like volume has been low??? How do u count that in btc or usd?
I'm sorry to get into the conversation. The volume is really record, on site tradingview it is shown in BTC, on Bitfinex for example:
https://www.tradingview.com/x/PgkcHkXM/
But it's true not for all exchanges, on Bittrex, Poloniex there is no record volume (though they are trading for USDT).
p.s. I still keep the dollars in reserve in case of a fall in the area of $ 5000.
What exchange are you looking at? This is from Bitstamp:
Really like your analyses. Definitely think we aren't in the clear yet. Excited to see how BTC and all test the waters in light of the SEC's news today. Thanks for posting!
Yup, the SEC news was very positive for Bitcoin and cryptos. Lets see if we will get a continuation tomorrow.
Definitely good news coming out of the Senate today and that may have just been the spark that was needed to put the FUD behind us. I would be lying if I wasn't a little excited to have the market recover while the Dow is still shedding volume! A little poetic justice maybe?
According to the firm Autonomous Next, the number of hedge funds investing in digital assets like Bitcoin has grown rapidly to more than 100. Since the launch of Bitcoin Futures on the Chicago Mercantile Exchange in December 2017, it shouldn’t be a surprise to anyone why the price of Bitcoin is down 50% from the high.
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Only Retail Investors chase price and buy high and sell low, while the Professionals buy low and sell high. The Hedge Funds have purposely sold Bitcoin futures to get in a better price.
At the moment, there is a war taking place between the buyers (Hedge Funds) and the sellers (Retail Investors) called capitulation. That line in the sand was at $9000. Capitulation is when investors give up any previous gains, by selling, in an effort to get out of the market. Capitulations are outcomes that result from the maximum psychological and financial pain that can be endured by a group before throwing in the towel. The Retail Investors are throwing in the towel after seeing a more than 50% correction in the Bitcoin price to the buyers, the Hedge Funds. With 100s of millions of dollars to invest, we are witnessing an accumulation phase by the Hedge Funds between $6000 and $9000.
The Hedge Funds are loading up and buying from the Retail Investors. But to fill all their buy orders, as the sell orders dry up, price must go down to the next stack of sell orders. We are approaching what I believe will be the bottom of bitcoin at $6000. My first target is $12,000 and my second target is $17,000 over the next 3 - 9 months.
The easy money has been made over the last 12-18 months. With the big boys in the game now, the rules have changes. The question is, are you ready to play to win with a new play book?
This post is my personal opinion. I’m not a financial advisor. Do your own research before making investment decisions. By reading this post, you acknowledge and accept full responsibility of any gains or losses.