Bitcoin weekend update, weekly btc chart 9/19/2014
Market has sold off sharply since two days ago. We are very oversold and a small bottom is forming. In the past, any bull's attempt to form a bottom was sold off such as a fake head and shoulder along with other W like patterns.
Taking a look at the weekly chart, major support areas are at 400. Multiple crashes (strong ones) bounced here. I expect at least a light bounce before retesting 400 again.
In bigger scheme of things, bitcoin price is bearish. This is the 4 or 5th time we retested this zone. BFXdata shows that there are still a lot of people holding USD swaps at 20 million during this crash. Is there going to be a margin-call style sell-off to come? BTC swaps are already reduced, short term traders have already covered their position.
I personally made a few trades this week, a long trade that was too costly, a short at 403 that made a small profit and I am now long at 391. I try to post my trades on reddit/twitter as soon as I can. I went long for a small bounce into the 420 area, look at the weekly chart, the first blue line. Its very likely we will hit that target at least because those are major support and resistance areas in the past.
For those who are bagholding that are not investors, here is a quote I find very inspiring and educational for my trading.
"When the market goes against you, you hope that every day will be the last day – and you lose more than you should had you not listened to hope. And when the market goes your way, you become fearful that the next day will take away your profit and you get out – too soon. The successful trader has to fight these two deep-seated instincts." J.Livermore
I hope you all have a great weekend.