Bitcoin Weekly Update #2
By 4C Trading — 23/09/2019 :
This analysis is intended for swing traders or medium-term investors. As a reminder, swing trading is a strategy of speculation in financial markets where an asset is held only for a few days to take advantage of price fluctuations. In this analysis, which you will find every week, I will detail my vision of the market and more specifically the one of Bitcoin. In addition to a technical analysis, I will summarize 3/4 of the news that impacted the market.
Anything new for Bitcoin?
Since my last analysis, without much surprise, the Btc has remained in its symmetrical triangle configuration. The week was not a quiet one, with the break of an important support that is now becoming resistance. I am talking about the $10088 that corresponded to last month’s opening.
The bullish/bearish scenario highlighted in the previous analysis is therefore still valid. However, thanks to one of our 4C-trading traders, we can highlight a new strategy. The latter is based on fractal price theory: these are simple but important repetitive patterns, self-like over different time ranges and used by traders to identify or confirm a trend.
In our case we have to go back to July/August 2017. As can be seen on the associated graph, the chartist configuration that the Bitcoin currently follows is very similar to that of summer 2017. Thus, one could imagine the following situation:
Break of the triangle downward (against the probabilities seen in the previous analysis). The goal? Deceive the “majority” of traders/investors by letting panic and fear take hold of their emotions. Then rebound and recovery of a bull market financed by:
- the traders’ stop-losses that will have let their emotions take over
- the huge liquidity gap in the $8000 zone
All you have to do is monitor the market, choose the scenario that is most likely to happen based on your own analyses and indicators and play it. Don’t forget your stop-loss, good money management is the basis of all trading. If you do not have all the knowledge on this subject, I invite you to read this article.
NB: Bakkt was launched today and for the moment there is no big movement. This could change quite quickly and accelerate the exit of the symmetrical triangle or not. Indeed, the market has been waiting for weeks now for Bakkt’s arrival and therefore the news may not create any movement because it will have been anticipated.
Graphic :
>> News :
LINE launches crypto trading platform, Bitmax
Line, the Japanese messaging giant has officially released their crypto exchange, Bitmax. Initially, users can trade BTC, ETH, XRP, LTC and BCH with a very small amount of money which is 1000 yen (approx. $9). Furthermore, users can access to Bitmax through Line Pay and Line Wallet. If Line users have verified their identification in Line app, it will help them to shorten amount of time in verifying their identity on Bitmax.
Deutsche Bank joins JPMorgan’s IIN
According to the Financial Times, Deutsche Bank has joined the Interbank Information Network (IIN), a blockchain-based network belongs to JPMorgan. Currently, IIN has over 60 members around the world. By joining IIN, Deutsche Bank will be able to communicate and exchange information globally.
U.S. Congress to discuss Cryptocurrency with SEC
The US Congress has set Sept. 24 as a day to thrash out issues relating to cryptocurrency together with the leadership of the SEC, which comes just a day after Bakkt launch.
Electronic Arts Tweets: ‘Invest in Crypto’
The game publisher EA (Electronic Arts) has tweeted “Invest in Crypto” on september 19, 2019. The tweet that seems to come from nowhere was however a marketing strategy to promote the new season of its game : Apex Legends Season 3.
Nico, analyst at 4C-trading.
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