GYMBase Exchange Technical Analysis | Bitcoin

Disclosure: Neither GYMBase or myself are providing investment recommendations. This articles are intended to explain how I would trade in the current market. This post intended for starting a discussion discussion only.

We will like to launch our technical analysis daily review with today’s Bitcoin Chart. What a better way to launch it bu honoring the mother of all coins, BTC.

As you can see November 14th was the day when all went to hell, or like i like to call it, the momentum changed dramatically. A good indicator to keep your eye on is the RSI. As you can see it shows that the trend confirmed to be bearish on that day by braking the lower boundary of the RSI chart.

It is also worth noticing that the 5 day moving average was on the negative side for 15 days. It was not until November 28th that the 5 day moving average showed some slowing down on the downtrend.

That is all good, it is easy to predict charts when things already happen, however, how will I base my decision on when to get in the market again?

The first this I am noticing is that since yesterday we are on the positive side of the moving average. This would trigger me to think about getting into the market, however, so was November 28th and it went sideways for a few days to then go on a downtrend again. So in search for a confirmation on pulling the trigger I looked at the RSI and compared booth November 28th and December 17th. We can see then that since November 28th the RSI was flirting with the bottom range and it was not until December 17th that it decided to break inside the boundaries again.

It is very important when using technical analysis to use indicators as confirmations for your trade. The more the better.

I am zooming out to a wider chart. As you can see we we are on a price resistance that was last touched in September 14th of 2017. I think I will give is a few days to see if it breaks it, we could see BTC at a price of $1,830 in a matter of two months. I will call it a bottom if BTC does not cross the $3,200 mark again for at least 1 month.

Then again, this is just my opinion.
Carmelo Milian
GYMBase.io