Bitcoin Technical Analysis
Bitcoin (BTC/USD) sparked into all-time highs, garnering a lot of interest across the globe. The new rise of Bitcoin was well-noted in other Altcoins such as Riecoin (RIC/BTC) and Ripple as traders seek to discover the next ‘Bitcoin.’ In our trading strategy for the cryptocurrency we focus on the intraday trend of Bitcoin against the US Dollar. We have noted technical analysis is applicable as it is now benefiting from greater liquidity. Providing a long-term strategy for Bitcoin is challenging as some retracement is required in order to assess such a projection for the cryptocurrency. We are aware some are suggesting Bitcoin is a bubble waiting to burst, however, from our experience it is too early to determine this indeed would be the case. As the prior rally in Bitcoin was artificially triggered, we cannot fully conclude there is a bubble in Bitcoin.
We are focusing on short time frames, designed for Bitcoin day traders regardless of the exchange that is used. As not many Bitcoin traders are familiar with technical trading terms we will do our best to simplify our the trading strategy. The aim our Bitcoin strategies is provide a technical approach to trading Bitcoin via both short and long time frames. We have been providing trading strategies and trading signals since 2014 and would like to expand our coverage to cryptocurrencies. The current Bitcoin strategy may be accessed by all traders but in the future it will be restricted to traders that applied for a subscription. You may follow us on Facebook or contact us for more details.
BTC/USD 60min Chart
Please click on the chart to enlarge:
Bitcoin Intraday Strategy
Bitcoin has been locked inside a range for almost 24 hours, trading between $1,967 – $1,997. A firm break above 1997, meaning, should Bitcoin close above 1,997 at the top of a round hour (12:00, 13:00, 14:00 etc.) it may confirm further gains are expected. The target for the breakout strategy to the upside is seen at $2,037. Following the breakout the price may re-test (trade back) $1,997, which if holds concretes the scenario of a successful breakout. Should Bitcoin test $2,037 but is unable to break higher it may provide a sufficient entry to short (sell) Bitcoin, target $2,020.
A break below $1,967 may pave the way for further weakness, targeting $1,930. A more aggressive approach would be to sell BTC/USD at re-tests of $1,997 and $1,997 via the 15min chart, however, a breakout may be the optimal approach. The 21 Moving Average (a tool that is often used for technical analysis, in black) acts as the immediate support. A break below the 21MA may trigger stronger selling pressure, however, we must highlight it is a fairly aggressive approach as opposed to a breakout.
We will cautiously say that based on the intraday outlook there is a fair possibility corrective weakness (selling) may take place rather than a break to the upside. however, it is down to the market to decide. We will update this page with the progress of our intraday strategy.
As we were about to release the strategy the price spiked above $2,000. A 60min close above $2,000 may affirm the breakout strategy.
21/05/17 UPDATE: Once a breakout was affirmed BTC/USD maintained its uptrend. The $2,037 mark was violated as the cryptocurrency continued to trade higher. We suspect that as we are facing historic highs our Bitcoin ripped through $2,037.
Please click on the chart to enlarge:
Bitcoin has successfully tested $1,997, which may suggest it is due to trade higher. Dip buying strategies may be exercised upon an additional re-test of $1,997. The $2,037 mark is now meaningless.
If you wish to be updated on our next Bitcoin strategy do follow us on Facebook. Please note that in the near future our Bitcoin trading strategies will be for subscribers only but for the time being it can be accessed by all traders.
Last Updated on May 21, 2017