Price Of Bitcoin Perfectly Moves With The Forces Of Supply And Demand, Which Is Depicted By Candlestick Charts. Knowing How To Read Candlestick Charts And How To Analyze Candlestick Patterns Can Give You Hints On Possible Direction Of The Market. (x-post from /r/Bitcoin)
Everything you need to know about technical analysis in crypto trading
Hello, community! 👋🏻 In this post, we will tell you about technical analysis. 📊 There are three main schools for analyzing cryptocurrencies or any other asset. These are fundamental analysis, technical analysis and sentiment analysis. Technical analysis is the main method in crypto trading. 📈 Technical analysis (or TA for short) is the art of predicting price movement through the study of charts that show how an asset has traded in the past. You need to find and compare patterns that have been encountered earlier. It is assumed that past models are highly likely to work in the future. The number of methods used by technical analysis is very large. But they are broken down into several fairly specific classes: 🔹 Levels and lines of resistance and support 🔹 Technical Indicators 🔹 Figures (patterns) on large areas of the chart 🔹 "Candlestick analysis" - patterns on Japanese candlesticks or bars in short areas 🔹 Trade statistics - volumes, order books, etc. TA was originally developed for markets where trading has a long history and a large amount of data. TA outperforms analysis based on business fundamentals, according to an extensive 2015 study by three Israeli researchers. Many traders say that TA is even more important in cryptocurrencies, as no one can yet confidently determine the fundamental value of Bitcoin, which was launched just 11 years ago. Is it a hedge against inflation, a digital form of gold? The future of money? It can be all of the above. ⚙️ Technical analysis is a key part of an asset management strategy, and it works well when combined with news analysis to identify likely move patterns and up / down limits. Since cryptocurrencies are highly volatile and speculative, technical analysis provides key indicators of price movement, especially support and resistance. ✅ With the help of technical analysis, it is good to predict where the price will move next. Take advantage of the BITLEVEX platform to build your crypto capital. ✅ BITLEVEX is a secure and reliable trading platform that gives you the opportunity to earn big. You can make up to 500% profit within 24 hours! And there are no deposit and withdrawal fees! 🔥 Hurry up and register now:https://bitlevex.com https://preview.redd.it/fnivq596mpo51.png?width=1920&format=png&auto=webp&s=350b387236f5e9d033f4f5518bd4936d80cfd5ed
Cryptocurrency technical analysis: bears drive the crypto market movement
Cryptocurrency technical analysis: bears drive the crypto market movement The negative sentiment continues to reign in the crypto asset market, as indicated by technical and fundamental analyzes. Thus, the drop in demand for many top altcoins caused by the bitcoin correction has already led to the fact that the bears have reached many targets located in the support area. At the same time, several interesting events took place on the crypto market over the past working week. On July 15, it became known that the Chinese authorities will test the digital yuan on the largest supplier of groceries and food delivery Meituan Dianping. The work of the Chinese CBDC is already being tested by McDonald’s corporations, Starbucks and DiDi, the largest taxi aggregator in the Middle Kingdom. On June 16, Samsung announced the start of a partnership with Stellar, within which the developments of the blockchain project will be integrated into the Samsung Blockchain Keystore and Samsung Galaxy smartphones. Also, one cannot fail to note the large-scale hacking of the social network Twitter. On the night of July 15–16, unknown attackers gained access to 130 accounts of prominent businessmen, politicians and opinion leaders. As a result, fake Elon Musk, Changpen Zhao, Bill Gates and Barack Obama posted messages calling for bitcoins to be sent to them, which allowed them to collect 12.86 BTC.
On the four-hour chart, bitcoin develops a very clear movement along the levels from the point of view of technical analysis. After retesting the resistance at $9500 and the lower boundary of the “Triangle” pattern, BTC quotes rushed down to the first target at $9150. If in the coming days the price consolidates below the support level, then in the short term we should expect the development of a downtrend. The closest targets for sellers will be $9000 and $8760 (38.2% correction at Fibonacci levels). At the same time, the persistence of negative sentiment in the stock market will be a signal for the digital currency market, which will continue to fall until the beginning of autumn and the recovery of the business cycle. In the long term, this may lead to a decline to supports at $8330 and $8050. But in order to push the price lower, the bears will need to exert enormous forces. Moreover, from these levels, whales will begin to gain new positions, which will push the bitcoin price up and launch a medium-term growth trend. It will confirm its departure above the 200-day simple moving average (SMA) line and the closing of Japanese candlesticks above $9500. In the long term, this will make it possible to achieve medium-term goals in the form of clusters of $9,900- $10,000 and $10,400- $10,500. BTC / USD chart, four-hour timeframe So far, the first cryptocurrency also cannot form a global trend, and this has led to the fact that Bitcoin continues to consolidate movement within the $8900 cluster (50% correction at Fibonacci levels) — $9580. BTC quotes have already dropped below the $9,300 level, which could lead to sales up to $8,900. In the future, we should expect Bitcoin to test the targets of $8600 and $8220, where the 200-day moving average (MA) line and the lower border of the technical analysis model “Triangle” (on the chart below, its borders are marked in orange). For a short time, BTC quotes may even drop to supports at $7400 and $6800, but the forecast for the price rebound back up and the formation of a long-term upward trend seems more likely. This will allow Bitcoin to reach the $10,000 and $10,500 levels, and their subsequent breakout will allow the asset to rush to the $11,000, $11,200- $11,300 and $11,800 levels by the end of the year. BTC / USD chart, daily timeframe
The altcoin market is also developing neutral dynamics so far, but more and more signals appear on the charts that speak in favor of the development of a downward movement. Big capital is not yet ready to acquire digital assets at a price that has grown strongly since March. Ether price develops along the $233 level (11.4% Fibonacci retracement line) and within the framework of consolidation within the $220- $251 range. The drop in the total demand for digital assets will lead to a decrease in the cost of ether towards the first target in the form of consolidation of $195- $200, where the 200-day MA line is located. The further course of trading will be determined by the appearance or absence of demand for cryptocurrencies. In the long term, by the end of the year, we should expect a move above $251 to the resistance areas of $280, $300 and $320. ETH / USD chart, daily timeframe
On the daily chart, Litecoin continues to consolidate above the support boundaries in the form of a $40- $42 cluster, which takes the form of the Andrews Pitchfork technical analysis model. The development of the downward dynamics will lead to the fact that the cost of LTC will drop to $36 and $30.60. But in the medium term, we should expect the quotes to move above the 200-period MA line, which passes in the resistance area of $47.45. Overcoming it in the coming months will allow LTC quotes to soar to the levels of $51.50 (38.2% correctional level along the Fibonacci lines), $56.80, $60.80, $65 and $70. LTC / USD chart, daily timeframe
The Bitcoin fork began to decline after the breakout and a very clear retest of the lower boundary of the technical analysis model “Triangle” (on the chart below, its boundaries are marked in pink). At the same time, the Bitcoin Cash quotes remain within the framework of a broader consolidation in the form of the “Horizontal Channel” $200- $272. However, the priority trading scenario remains a decline in Bitcoin Cash to the $200 level. There is also a high probability of updating the March lows in the $170 and $150 regions. However, in the months ahead, expect BCH to move above $272, where the 200-day SMA line passes, paving the way to the $305, $356 and $400 levels. BCH / USDT chart, daily timeframe
XRP is also under the influence of bears, leading to a decline towards the resistance level at $0.2050. In the coming weeks, the asset may test the support at $0.18, where the lower border of the Descending Triangle model lies. The development of the downward movement will allow XRP to test the support at $0.16 and $0.1470. But in the medium term, a signal for a reversal of the downtrend may appear in the event of a break above the 200-day MA line passing at the level of $0.2360. If this happens, then in the second half of 2020 XRP will be able to reach important targets at the levels of $0.2540, $0.27, $0.2860 and $0.30. XRP / USD chart, daily timeframe
Binance Coin tried to break the bottom of the Ascending Triangle, but failed. The current quotes are supported by the 200-day SMA line and the boundaries of the $15.30- $16 area. Maintaining the downward momentum will allow BNB to rush down to the supports at $13.80 and $11.50. But the most likely scenario looks like a final consolidation above the 200-day MA. This will open the way to the current resistances at $17 and $18.14, as well as the first target in the form of a $19.36- $20 cluster. Testing of the $21.30 and $23.50 levels is also expected in the coming months. BNB / USDT chart, daily timeframe Now more and more crypto assets are showing a willingness to succumb to bearish pressure, which will send quotes into a short decline that will last over the next few weeks. But by the end of the year, we should expect the activity of whales, which will begin to massively buy cryptocurrencies. This will undoubtedly send their value into a long-term upward rally. Subscribe to our Telegram channel
The basics of crypto-trading: indicators, charts and trend lines
The basics of crypto-trading: indicators, charts and trend lines Halving on the Bitcoin network has become one of the key events in the cryptocurrency market, which has fueled the interest not only of long-standing players, but also has caused the release of new ones. This is evidenced by recent data on the growing demand for crypto assets on top cryptocurrency exchanges such as Bithumb Global. For those who are just getting acquainted with the crypto-market and want to try their hand at trading a new class of assets, we will tell you what tools crypto-exchanges offer and how to use them in crypto-trading. To start trading cryptocurrencies, you must first select: • Crypto-wallet — there are several types of crypto-wallets: hot, cold, desktop, mobile and paper. All of them provide different levels of security and convenience. At the same time, the best option for storing cryptocurrencies is the use of two different wallets — hot and cold. So do most large companies working with digital assets. • Crypto-exchange is a trading platform that will allow you to exchange, buy and sell cryptocurrencies. Such platforms can be centralized (CEX), decentralized (DEX) or hybrid, combining the qualities of CEX and DEX. • A crypto-portfolio is a collection of crypto-assets collected for profit. It is best to form it in three stages: part of the currency for long-term storage (from 1 year and longer), another part — a medium-term deposit (up to six months) and a deposit for trading for several days or a week. When starting crypto trading, it is advisable to diversify your investment in a deposit for trading, paying attention not only to the potential of a particular coin, but also to the ways of earning that the cryptocurrency market offers. Experts advise at the initial stages to choose assets from the top 10 rating by capitalization.
• Order — a trader’s request for a cryptocurrency transaction. Orders are divided into market orders — for purchase (Buy) or sale (Sell), and pending — requests for a transaction at a non-market price, waiting for it to be at the right level. Pending orders include: ⁃ Limit — for sale / purchase at a price higher / lower than the current market price ⁃ Stop loss — orders to limit the loss ⁃ Take Profit — Take Profit Order • Market maker and market taker are market participants who create and accept orders. The market maker creates a new transaction request, increases the turnover of the exchange and raises the liquidity of the crypto asset, while the receiving market taker takes the asset out of circulation, lowering its liquidity. In this connection, different commissions are introduced on some crypto exchanges for makers and takers. • Exchange Cup or Order Book — a table with limit orders, which displays the closest sellers and buyers, where sellers’ orders are marked in red, and buyers are marked in green. The columns of the table show the number of cryptocurrencies and the price at which they intend to sell or buy. At the junction of these tables, a spread is formed — the difference in the price of supply and demand. The lower the spread, the more liquid the cryptocurrency. The analysis of the stock market is a leading indicator of the state of the market, since it allows you to predict changes before they happen. • Long and short positions (Long and Short) — the usual “mode” of trading. In the case of a long position, we buy cheaper and sell more. It is believed that the growth of assets in the market is a long process, therefore, work in this direction is also called long. The second option means a short position, that is, a game for a fall. The market believes that the decline in the value of assets occurs quickly, that is, in a short time. Therefore, this position is called “short.” • Exchange chart — shows the change in the price of cryptocurrency over time and is the most important tool for technical analysis. Charts display price changes with a line, bar and candlestick. • Bulls and bears — in the market so-called buyers and sellers. There is an analogy with the nature of animals: buyers always push the price up, creating a demand for something, and it turns out that the price seems to be pushed by horns. In this connection, bulls are optimists, they believe that the prices of the shares they bought will rise, and someday they will sell the asset more expensive than they bought. The bulls in the market are overwhelming (by approximate estimates, up to 80%), long investments are kept on them, and the bull trend means stable growth of stocks and general welfare. Bears, in turn, are sellers who have learned to capitalize on a falling market: they usually try to sell cryptocurrencies faster, often lowering the price of an asset. Concluding a contract for the sale, they fix its value, and then wait until the goods fall in price, close the deal and put the proceeds in their pocket. Bears are interested in a constant reduction in prices and achieve their goal, provoking an increase in supply: open short positions and sell until the price drops to the desired level. • Technical analysis is a set of tools for market forecasting of prices based on the movement of value in the past. In technical analysis, the same tools can be used for different markets and trading pairs with a slight adjustment of indicators. Also, technical tools are equally successfully used on any timeframes — from a minute to a year. • Fundamental analysis — this type of analysis is based on the consideration of financial and production market indicators that may affect the price of a traded instrument. The mood of market players, current and growing trends, indicators of production activity — all this information can give an extensive idea of the potential of the investment object in question. The main disadvantage of the fundamental analysis is that the information provided by him is insufficient to predict the movement of prices in some local areas. It is possible to determine a potentially good company that has excellent financial performance and has real prospects, but it will be impossible to determine the moment of entering a short-term profitable trade with a good indicator of risk to profit ratio. • Pattern — behavioral model / trading setup / market pattern. Patterns are one of the most common methods for analyzing price movements. Each pattern is always based on a certain idea, the simplest and most understandable. There are a lot of trading models, but all of them are derived from the classical model of breakdown or rebound from certain significant price levels.
Basic cryptocurrency trading tools at Bithumb Global
Using the example of a centralized cryptocurrency exchange Bithumb Global, we will analyze the main elements that cryptotraders will encounter in the initial stages of trading. When choosing a cryptocurrency exchange, first of all, you need to pay attention to the presence of: ⁃ Convenient ways to deposit and withdraw funds ⁃ Fiat currency support ⁃ High number of trading pairs ⁃ Information on the current state of cryptocurrency rates ⁃ Cryptocurrency Rate Charts ⁃ Technical indicators ⁃ Different levels of user verification ⁃ Built-in cryptocurrency wallet ⁃ 24/7 tech support On the Bithumb Global main page, a selection of top trading pairs is offered, where cryptocurrency tickers are listed, their price, exchange rate for the last day, daily trading volume and the asset quotes movement chart. Top trading pairs at Bithumb Global. Source. If you select a pair from this list, then Bithumb Global will automatically transfer the user to the Base Version of Spot Trading. Spot trading — the terms of the transaction with cryptocurrency, in which payment is made to both parties immediately. Here the user can get acquainted with the latest price of an asset, the volume of transactions with it, data on transactions and the minimum and maximum prices for the last day. Basic Version of Spot Trading on Bithumb Global. Source. You can select another trading pair in the top menu by hovering over the corresponding button, but the easiest way is to find the desired pair through the search. At the same time, the Professional Version of Spot Trading opens up a wider set of tools for the user, which will be discussed later.
Trading Tools Professional Version Bithumb Global
On the Professional Version, users can use price charts in the form of Candles, which look like a series of vertical lines and display price changes, where the upper point shows the maximum that the price has reached and the lower one — the minimum. If the closing price is lower than the opening, then the candle will be painted red or black, and if higher, then green or white. Knowing the direction of the price movement (body color of the candle), we can say exactly where the closing and opening prices are. Price chart in the form of Candles at Bithumb Global. Source. Also in this version of Spot Trading, a price chart is available to users in the form of a Glass, where sellers ‘bids are marked in red and buyers’ bids are marked in green. The analysis of the stock market is a leading indicator of the state of the market, since it allows you to predict changes before they happen. If, for example, a large congestion of sales requests at the upper price limit can be noted, then as soon as the market reaches this limit, a recession will provoke, triggered by a large number of sales. Price chart in the form of a Glass on Bithumb Global. Source. Price charts also have different timeframes — from 1 minute to 1 week, which allows you to conduct a more in-depth analysis of the movement of quotes of the selected asset. Bithumb Global price chart timeframes. Source. Also in this version of Bithumb Global, various Indicators are available to traders. In total, the cryptocurrency exchange provides about 80 different indicators that will help in the technical analysis of the movement of crypto asset quotes. Let’s analyze the main indicators available on Bithumb Global: • Volume — allows you to track the number of transactions completed by traders over a specific time interval. Green and red bars are indicators of the volume of transactions: red signals a decrease in volume, green — its growth. By analyzing the volume of transactions against the background of the price movement chart, you can confirm the strength of the trend or reveal its weakness and predict a price reversal. If prices rise and trading volume rises, we observe a bullish trend. An increase in trading volume in the event of a decline in prices indicates a bearish trend. • Moving Average (MA) is just as popular a tool as volume is. The indicator function analyzes the average prices for the selected time interval, which gives a relative idea of the general price trends. If the actual price of cryptocurrency for a long time keeps above the moving average, we can assume that it will continue to grow. Accordingly, a fall below MA is a signal to lower the price of an asset. For more accurate forecasts, it is advisable to use several moving averages based on different time intervals. Moreover, in case of disagreement, it is customary to consider the value of the average based on a longer period of time. If the signals from several moving averages coincide, we can talk about a fairly accurate forecast. • MACD (Moving Average Convergence Divergence) — having trained on one moving average, we will move on to a comprehensive analysis of this indicator. The MACD tool analyzes the convergence and divergence of three moving averages and can signal the beginning of a new trend. MACD also works well on different timeframes and is a fairly simple and popular indicator of technical analysis. • Zig Zag is an auxiliary indicator that analyzes the highest and lowest points of the cryptocurrency exchange rate and allows you to determine the correct entry points into the market. The plus of the indicator is that it eliminates the noise that can distort the forecast of the trend behavior. Minor fluctuations are simply not taken into account: lines connect the highest and lowest points of the price chart directly. The zigzag shows global market movements, but at the same time it only captures these changes in the past, without giving forecasts on the price behavior in the future. • Relative Strength Index (RSI) — shows the greatest efficiency in a sideways trend. With active course dynamics, RSI may produce incorrect data. Such indicators of technical analysis are called oscillators, and they must be used with caution. The indicator’s algorithms analyze price changes and allow you to evaluate the oversold or overbought status of an asset and, therefore, predict the occurrence of a bull or bear trend. • CCI (Commodity Channel Index) — The CCI or Commodity Channel Index, as well as the Relative Strength Index (RSI), helps evaluate overbought or oversold assets. This chart with values from minus 100 to plus 100 is displayed under the current price chart and can be applied on any timeframes. A CCI of more than a hundred means that the asset is overbought, and the price is about to fall, and on the contrary, a CCI below minus one hundred indicates the oversoldness of the asset and the likely increase in its price. This tool also refers to oscillators and is used during a lateral trend when there is no clear idea of how the price will behave in the near future. • ADC and DI — the index of the average direction and direction of movement, signals a change in trend. It looks like three lines on the chart: red — bears, green — bulls, blue (there may be other colors on different platforms) — the strength of the trend. This indicator is fairly reliable on four-hour and day frames. If the trend strength line is within 10−20 points, this indicates that the trend is gaining strength, but if the indicators reach 60−80 points, you should wait for the trend correction. The green and red lines will show who sets the market mood — bulls or bears. If the green line crosses the red line, the trend becomes bullish, and vice versa. Indicators at Bithumb Global. Source. Another useful tool available on the Professional Version of Bithumb Global is Trend Lines. It allows you to demonstrate in which direction the price of an asset is moving. The Dow theory, which is the basis of all technical analysis, suggests that no matter how the price behaves, it will always be in a particular trend. If the price behaves relatively evenly and stays in the same range without showing either growth or decline, such a trend is called a side or flat trend. A growing (“bullish”) trend is characterized by the appearance of a series of ascending highs, with each new peak must be higher than the previous one. Accordingly, the “bearish” downtrend shows points of failure (price low), each subsequent of which will be lower than the previous one. A trend line can be built on two points of a minimum or maximum, and a third confirming one is mandatory. The more points form a trend line, the more confident and stable the trend itself. The construction points should not be too close to each other in the time frame, otherwise the direction of the trend will not be completely correct. Please note that the uptrend line is plotted below the chart, and the downtrend is above it. The slope on the trend line should also be taken into account — its constancy indicates the stability of the trend. The change in the angle of the trend line is called the acceleration or deceleration of the price movement. The larger the angle, the faster the trend. A line through price lows is called a support line. As soon as the price reaches it, it finds market support there and, pushing off, again strives upward. The line connecting price highs is called the resistance line.This is the level above which the value of the asset has not yet risen. If the price breaks the support or resistance line, this is a clear signal for a trend violation and a change in trading tactics. Trendlines at Bithumb Global. Source.
The above are the basic trading tools available to traders of the Professional Version of the Bithumb Global crypto-exchange. They will help you figure out how to properly analyze the key metrics of cryptocurrency assets so that you can build the most advanced trading strategy. However, this is not the whole range of tools available to Bithumb Global traders. Follow DeCenter materials to learn about the intricacies of cryptocurrency trading on the advanced cryptocurrency exchange. Subscribe to our Telegram channel
/r/ethtrader quickstart guide - Acronyms, Jargon, and Personalities.
Hi there new ETH investor and/or new /ethtrader community member! Glad to have you aboard. We are a pretty lively bunch around here; inside jokes, memes, and jargon run rampant. I figured I would create a sort of glossary to help you figure out what the actual fuck we are talking about. Acronyms (thanks decronym) BGD: Big green dildo, as in a big green candlestick on the price chart. BTFD: Buy the fucking dip. ATH: All time high, the highest price of a thing ever, 1400ish for ETH. FOMO: Fear Of Missing Out, the urge to jump on the bandwagon when prices rise. DeFi: Decentralized Finance, MakerDAO and Dharma and stuff. Loans basically. CDP: Collateralized debt position. A DeFi thing. FUD: FeaUncertainty/Doubt, negative sentiments spread in order to drive down prices. MEW: My Ether Wallet, a website to make and interact with wallets. TA: Technical analysis, predicting the future of the price based on the past. 2FA: 2 factor authentication, its a security thing, a second password of sorts. ERC20: The standard for tokens built on ETH. POS: Not piece of shit, or point of sale. Proof of stake, the new consensus mechanism coming to ETH soon™. ICO: Initial coin offering, the birth of a new crypto, usually an ERC20. Like an IPO. IEO: Initial exchange offering, like an ICO, but typically a bit more scammy. EZPZ: e_z_p_z_, more on him later... BAT: Not the animal, Basic Attention Token OMG: Not oh my god, well sometimes oh my god, but mostly OmiseGo. Pronounced OH-ME-SAY GO btw. MKR: MakerDAO. REP: There is too many tokens to list here, just google it you will figure it out. DYOR: Do your own research. People want to steal your money. Make sure you know what you are buying. LN: A silly bitcoin thing. GDAX: The old name for Coinbase Pro. Jargon Bull: Confident the price will go up. Confidant: misspelling of confident from e_z_p_z_. More on him later... Bear: Confident the price will go down. Cuecomber: Cucumber, another EZPZ classic. Can be used as in cool as a cucumber, or as in BGD (see? now you know what BGD means, damn this guide is helpful.) The ratio: The trading pair ETH:BTC. The flippening: The ETH marketcap being bigger than the BTC marketcap. Coming soon™ . Soon™: The release date for everything crypto related. Donuts: Like reddit karma but /ethtrader specific, and infinitely more valuable. Legend has it that if you get 10 million donuts Vitalik sends you 10 ETH for every 1 ETH you send him. The name comes from cyounessi's post here. Moon: The price where you can buy a lambo. Mooning: The price increasing rapidly. Maybe exposed butts depending on how you choose to spend your money. Moonboy: A hopelessly optimistic/greedy person. $13: The price was stuck here for a long time. Dark days for /ethtrader. $420: The top of the bull market before last. Also weed dude hehehe. $300: The price was stuck here for what seemed like forever. Oh how easy we had it back then... $324: EZPZ's number. More on him later... $80: The bottom of the previous bear market. We will definitely never see this price again. HODL: Hold. From here. SODL: Sold, same as above. BUIDL: Build, you get the pattern. Golden cross: Moving averages of prices crossing. A TA thing. FIAT: Not the car. Fiat Money. USD, euros, pounds and so on. Sharding: An ETH scaling method. Don't make sharting jokes, they anger Vitalik. Ramen: The meal of choice when the price goes down. Pamp: Pump Bogdanoff: This. Just... Don't ask... Weeks not months: In reference to Joe Lubin's prediction for ETH futures coming out. It has been 75 weeks since he said this. The Winklevii: Founders of Gemini Exchange, the facebook guys. Updoot the diddly: Or anything with that vague collection of letters, Upvote the daily discussion. JT's fire pit: jtnichol posts pictures of food he is cooking in his backyard fire pit. Those posts make you hungry. The DAO: Tumultuous times in ethereum history to say the least.Further reading here.) Personalities vbuterin: The founder of Ethereum. We really really like him. Joe Lubin: Co-founder of Ethereum, founder of ConsenSys. Memes aside. We like him. carlslarson: Creator of /ethtrader. Overall good guy. jtnichol: A mod of /ethtrader. Overall sweetheart. The rest of the mods: Too many to list. It's a great group of people. They won't give you any trouble if you aren't being a dick. dcinvestor: DC is a smart guy with good opinions. We really like him. E_Z_P_Z_ the undisputed meme champion. A genuine crazy person. Made a bad sell on the way up, and wrote lengthy posts about how ETH was going back to $324 multiple times a day for months, often times with terrible spelling and grammar. When ETH did hit 324 he became something like a local hero. He is the heel of /ethtrader and we all love to hate him. lamboshinakaghini: A fool, not to be trusted. scienceguy9489: He used to regularly post TA. Sometimes he was right, sometimes he was wrong. The crucial thing was that he was memeable. He started to get a bit of an ego going, and was deleting his posts that were wrong, and keeping the correct ones. He recently made a return to /ethtrader and made a post that ETH was going to moon on a certain day and it ended up not being correct, which was just fuel on the meme fire. He goes by etherdamus now and runs a private TA group which has a fee to join. singlestateserenity: He posts a haiku in the daily every day until we flippen bitcoin. Reading a nice haiku is a pleasant way to start your morning. Everyone else: Well you will see them around and catch the vibe. There are just too many lovable and hateable people to list.
Bitcoin Price Signal That Preceded 4,000% Rally Forms Again, and It’s Huge for BTC
Ever since Bitcoin investors got a taste of parabolic price appreciation in 2019, which saw BTC gain 330% in some four months, they’ve been craving it, evidenced in the incessant flow of lofty predictions on Crypto Twitter. While this dream of another parabolic rally was fleeting for the second half of 2019, it appears that 2020 may be the start of something massive in the Bitcoin space.
Bitcoin To Soon Go Parabolic, Suggests Forming Signal
Prominent cryptocurrency trader Byzantine General, who earlier this month noted in an analysis that the Bitcoin bottom most likely came in at $6,400, pointed to the below chart on Friday: in it, it shows BTC’s one-month chart with so-called Heiken Ashi candles, which allows traders to more easily “spot market trends and predict future prices” than with normal candles. What’s interesting about this chart is that the current monthly candle for January is printing a green doji pattern, which would suggest that the long-term Bitcoin price trend is turning positive and that there is an imminent macro reversal on the horizon, if the rally to $9,000 doesn’t count anyway. However, with analysts currently charting short-term upside for this market towards $10,000 and beyond, there is a large likelihood the candle will end January in the green, boding extremely well for bulls.
Not the Only Positive Signal
It isn’t only the Heiken Ashi candles that suggest Bitcoin is on the verge of going parabolic for the umpteenth time in its history. Financial Survivalism, a pseudonymous analyst that last week called Bitcoin’s surge into the $8,000s when the asset was trading in the high-$6,000s, said that he thinks BTC will trade at $20,000 by July 1st of this year, which would clearly constitute a parabolic chart. While this may sound lofty, he went on to rationalize the prediction, drawing attention to an array of technical signals implying that bulls are about to assert a large amount of control over the market:
The Lucid Stop and Reversal has printed a bullish candle for the first time since July 2019, when BTC was trading well above $10,000.
The Average Directional Index on a daily basis has seen the first bullish crossover since March 2019.
The one-week Relative Strength Index for Bitcoin is “getting ready to test 50,” a level that if broken through may imply dramatic upside.
Bitcoin’s Record Hash Rate May Hint at Price Gains to Come
Article by Coindesk: Omkar Godbole Bitcoin’s latest bout of consolidation may end up with bullish breakout, as a key metric of miner confidence has hit all-time highs. The top cryptocurrency by market value has clocked lower daily highs and higher daily lows over the last three days and is currently trading at $10,300 on Bitstamp, little changed on a 24-hour basis. The cryptocurrency has charted the narrowing price range amid a surge in non-price metrics including a rise in the network’s hash rate — a measure of the computing power dedicated to mining bitcoin. The two-week average hash rate reached a record high of 85 exahashes per second (EH/s) around 19:00 UTC last Friday. Further, mining difficulty — a measure of how hard it is to create a block of transactions — also jumped to a new all-time of nearly 12 trillion. The hash rate could be considered a barometer of miner’s confidence in the bitcoin price rally. After all, the miners would be ready to dedicate more resources for mining if they are bullish on price and would want to scale back their operations if a price slide is expected. Hence, many observers, including the likes of Changpeng Zhao, Founder of Binance, and former Wall Street trader and journalist Max Keiser believe prices follow hash rate. https://preview.redd.it/vapgqlijqgn31.png?width=660&format=png&auto=webp&s=f7dbc990a6f6f57cbbf16ce2bbafa193e49a8acf Zhao tweeted on Friday that, “a rising hash rate means more miners are investing in BTC”, while few other observers stated that sellers should think twice before betting against the most secure blockchain — the higher the hash rate of a cryptocurrency network, the more expensive to 51 percent attack. Put simply, Zhao is expecting bitcoin’s price to track the hash rate higher. It is worth noting that the market stands divided on the relationship between bitcoin’s price and hash rate. Some observers believe the hash rate follows price and the metric’s outperformance represents overtly exuberant miners. Hence, reading the rising hash rate as a sign of an impending price rally may prove costly. That said, the price is likely to follow the hash rate this time, as overexuberance is typically observed at market tops or near record highs. As of now, BTC is down almost $10,000 from the record high of $20,000 reached in December. Also, the market sentiment is quite bullish with reward halving (supply cut) due in less than a year and the sustained uptick in miners’ confidence is more likely to draw fresh bids, possibly leading to a positive feedback loop. All-in-all, the narrowing price range established over the last few days is likely to pave the way for a bullish move.
Daily and 4-hour charts
Bitcoin has charted (above left) back-to-back inside bar candlestick pattern over the last three days. The first inside bar appeared on Friday as that day’s high and low fell within Thursday’s trading range. The second and the third inside bar candle was created on Saturday and Sunday, respectively. Inside bars indicate consolidation and lack of volatility and often end with an explosive move on either side. A break below the first inside bar’s (Friday) low of $10,154 would imply range breakdown and could yield a stronger sell-off to levels below $9,855 (Sept. 11 low). A break above Friday’s high of $10,458 would imply range breakout and open the doors to $10,956 (July 20 high). The falling wedge breakout confirmed on the 4-hour chart (above right) last week is still valid. So, the probability of range breakout is high. Disclosure:The author holds no cryptocurrency assets at the time of writing. Bitcoin image via Shutterstock; charts by Trading View
Hi guys, so I have made substantial amounts of profit with my investments into crypto so far, however because of my foolish trading in the past where i did not learn How to identify patterns and use trading tools and candlestick charts I have lost quite the amount of unrealised profit ( high 4 to Low 5 figures) I have squandered away a good percentage of my profit. Now, I have studied for days and weeks on end, and have been playing around with smaller amounts to practice not getting emotional and sticking to trades, my main question is, would it be advisable to trade with my main stack as a whole and use 3- maximum 5x leverage and attempt to short/Long bitcoin? I've read before that 95% of Traders fail, and its largely due to their emotions so I hopefully have that covered for now, but any tips from people who have successfully traded? I've already been going through the babypips course for forex trading to learn all about the basics, just hoping to find some decent tips here. I've also managed to already stop kicking myself for not being able to look at charts 24/7 and missing out on thousands/hundreds of dollars, but really now learning all about trading and staring at charts is getting too addictive PS: don't know this is weird but this year I'm 16 and instead of going out with friends and generally wasting my life away having fun I'm getting enjoyment trying to grow my stack and do trading, most of my friends can't even begin to fathom the shit I'm reading up on.
Figure: https://i.imgur.com/IefYopF.png The Tom Demark indicator is a somewhat well known indicator on wallstreet that creates 1-9's based on candlestick patterns. It's useful in seeing where buying or selling momentum dries up and profit taking on longs or shorts should occur. Above (if the TD indicator didn't stop counting), we reached a daily bullish 9 at the top of the initial correction - indicating to take profit. Now, we've had 9 consecutive days of red and have been accurately bouncing off the fibonacci resistance lines (magic rainbows) on the way down. On a red 9, typically a selling trend is ready for a bounce, but without violating the weekly chart (which is now a red 1). A 1-4 candle bounce is expected (1-4 days) and then lower if we maintain the bearish trend. However breaking above the lower fibonacci at 2640 at that time could be a bullish signal. The bottom fibonacci also happens to be around the 200 MA, which I expect is a fairly important point of inflection. Best of luck trading, this combination of TA has done well for me in the past, particularly with Bitcoin and Index trading.
12/20/13 K: Hey man, it's K. Is your name D? Anyway...getting money onto BTC-e can be tricky if you are trying to deposit USD. I kind of just had to learn by trial an error because I didn't know anyone that could teach me, because i am the only one that invests in crypto currency that I know. Anyway, coinbase is probably the best bitcoin wallet service in the United States. It is definitely the largest and most reputable. Use this referral link: Once you sign up using this link, it will give us both some free money after you have purchased some bitcoins. The process takes a little while to get all started up, but it is worth it because it is so easy to use after. You can instantly buy bitcoins, and then use those bitcoins to send to BTC-E to purchase whatever other coins you want. I invest pretty heavily in LTC. The only way I have been able to do that is by buying bitcoins on coinbase, and then sending them to btc-e. Let me know if this works for you.. K: Let me know if the email reached you D: Yep. I got it. Two to three days for the deposit verification into my bank account. Thanks for the advice. I take it you work in finance? K: Yeah I do :). Coinbase takes a bit for the verification process but it is super easy to use after that. When you sell bitcoins, they just deposit the money right back into your bank account. It's the easiest service that I have found that is reputable. D: Have you ever tried trading for small margins? I made about 0.60 USD since I started last night. I got my initial funding by mining FTC. I'm trading BTC. D: Actually up to 10.81 after my last trade. Got in at 625 and sold at 639. K: I mainly buy and hold for long term. I bought some NMC to flip, but it dropped in value steeply so im still holding it. I buy more every time it dips. Sent via wireless, please excuse any typos... D: Cool. No worry about typos. I type all day at work so don't mind as well. I give up on accuracy at 5. My friends also aren't very much into crytpo currencies. I like the technical aspect but I'm more interested in trading on BTC-E. I must have watched about 12 hours of bitcoinwisdom since yesterday. It was my first time analyzing real time data. I can't believe how much info you can obtain just from identifying patterns. I have a quick question about a 401k if you don't mind. So far my year to date is 26%, is that good? K: Yes, very good. You must have had it set up aggressively with the investing choices (which is better to do when you are young). Good stock market returns are around 12% so you are more than double, but don't be surprised if there is a correction to lower on the returns there too. D: Yes. I'm over 50% in small cap and am young. Is there anyway to avoid that correction by reallocating? K: Nah, just leave it. At least you have a 401k, most people are paycheck to paycheck D: Defiantly. I can't imagine how some of my co-workers get by paying overdraft fees each month. Have a good night. I'll let you know when I buy some coins on that site. K: Cool, let me know. Let's make some money! :) 12/22/13 D: Howdy K, I'm still waiting on the deposits in my bank account by Coinbase. Thanks for the referral link, I'm looking forward to that free $5 of BTC. Up to $12.30 USD on BTCE, looking to break $13 tonight. Can't wait to get some more trading funds. K: It takes a bit for the initial deposit. I think it took my bank almost a week :(. Once you are done though everything is quick. If you add a credit card too, you can buy up to 10 btc instantly per week D: Awesome. Have any suggestions? (pic) attaches picture of small gains trade history K: What do you mean by sugggestions? Like on your trading? K: Can you deposit more money? It looks like you aren't fully able to enjoy the full gains of your trades because the amounts that you are trading are a little small. If possible I would suggest buying 1 btc when the price is the lowest of the day, and then trade from there.. K: Also i would stay away from ftc for time being 12/24/13 K: Hey bud, i just got some free money from coinbase :) did you get it too? Pretty cool huh? D: Yes sir. 4 days for my order to fill, can't wait. 12/25/13 D: Merry Christmas! K: Merry xmas! If you add a credit card you can instant buy up to 10btc. What other coins are you buying right now? I mainly just have BTC and LTC D: Does the credit card have to be a Visa? I'm mining about 8 FTC per day and trading for BTC at market. Then I trade BTC/USD for 0.10 - 0.40 profits. Working on a spreadsheet right now which you can see if you are interested. D: spreadsheet sends corny orange and grey spreadsheet K: Think it can be mastercard or amex too... K: Nice LTC rally today :). I just picked up more LTC yesterday too D: I tried adding a mastercard and discover but it wouldn't work. I've been watching the rally. Waiting to buy in to BTC at $656. K: Shit that sucks, email support and ask if they accept mastercard? I find that odd that they would only accept visa D: No worries. Deposit should clear 12/31 12/29/2013 K: Hows it going? Did you get your btc? D: Hey K. Not yet, they will be deposited 12/31. Bought at $651 K: Nice so you are already up :) K: How much did you buy? You should buy some and hold long term if possible too 1/2/2014 D: Happy New Year, K. I only bought 0.2 BTC for about $131. I'm at a total balance of $179.07. Started mining FTC again for the few extra dollars per day. I think I read somewhere that there is a cap of 21 million BTC that will ever be in existence. 21 million on the internet is subtle considering how many views cat videos get on youtube. 21 million out 7 billion people is even smaller. Sometimes I find it hard to imagine millions and billions but I always think about this one thing: 1 million seconds is about 11 days, 1 billion seconds around 31 years. I'm very optimistic about the long term. Probably going to set aside at least 1 BTC in the near future. Have you ever seen BTC listed on ebay? I created an auction yesterday for 0.1 BTC, $120.00. It sold within 3 hours but the buyer flaked out after I told them they would be receiving the BTC-E redeemable code in the mail. They created a dispute stating that the ebay/pal accounts were accessed by an unauthorized third party which is currently in process. I didn't lose anything and actually sold back the 0.1 at $775 after buying at $740 last night. I'm considering re-listing some BTC on Ebay but don't want to deal with reversed payments. Have any insight? K: I heard ebay can be a nightmare with sellers getting scammed by buyers with chargebacks. If you are going to do it, I would recommend selling maybe paper wallets only, that you actually have to mail to them. That way you can have a tracking number for your shipping. If you want to sell through paypal, be careful, I think any mention of crypto currency can get your account frozen. Not positive about that though. Try selling to people on the forums, I think that would be easy. Honestly, I think just buying what you can and holding long is the best option to make the best returns. Look how the market has gone today D K: 21 million BTC is not even enough btc for each person in my state to have 1, let alone the United States, or the entire world. As long as the demand stays high, the price could become astronomical if some major players like wall street enter the game. Just think, if Wall Street threw like 100 mill at Bitcoins (which is not that far-fetched), the price would probably jump to like 3-4k per BTC after that 1 day alone… D: I don't think I'm going to sell anything else on Ebay until I come up with a better way of protecting against charge backs. The market has been awesome today. D: That's very true. I think my next purchase will be 0.5 BTC to keep in my wallet. K: Have you seen the stuff on zerocoin? Looks interesting, should be out this year...there has been a lotta hype around it.. D: Haven't heard anything about it until just reading an article now. Looks interesting and they make a good argument about anonymity. I only read over it briefly, but it appears what they're proposing would add an additional transaction fee the the process. Cool concept. Are you good with candlestick charts and patterns? K: Somewhat. I learned them in college but stopped using them until now, so I am pretty rusty…I get the concepts and all, but I am not a professional at them by any means. I saw my buddies wallet the other day…he is pretty stacked. Over 250btc and over 1000 LTC! D: That is pretty stacked. About 500k stacked, right? Are you familiar with the creator(s) of bitcoin "Satoshi Nakamoto"? Is it actually one person? There are quite a few claims as to who or whom Satoshi may be. K: Im not familiar, i heard it was a team of people under that one name D: I wonder if it was created by a goverment. Like some NSA type agency. Kinda like how the darknet started off as a Navy project. K: Nah I doubt it. Government wouldn't create something that could possibly pose a threat to its own currency. D: That's a good point. The future of BTC is exciting. 1/6/2014 D: Started trading NMC recently. Check ou the spreadsheet attaches another shitsheet Still just testing the water before I start making bigger trades. Buy any more BTC/LTC lately? K: Cool man.. Year i got some LTC at $16 right before it went back up :) 1/7/2014 D: Nice buy. Catch the market today? China's equivalent of Ebay banned the sell of btc, ltc, mining gear, etc. My understanding on of China: China’s central bank regulated the virtual currency for the first time on Dec. 5 by banning financial institutions and payment providers from conducting transactions in the virtual currency Chinese central bank officials told third-party payment service providers to stop offering clearing services to online Bitcoin exchanges China's Ebay bans sell of BTC in accordance to the central bank's ban effective Jan. 31. Acting as a clearing house of BTC. I'm now $180 long NMC. I might invest 1k soon on BTC, any thoughts on an upcoming entry point? K: Hmmm not quite sure on entry point. I am in the red as of today on NMC. Im trying to get it back to 0.01 btc to convert my nmc back to btc, i missed it on the last push. If you are investing 1k and holding long, then any of the daily ups and downs dont matter because in the long run we hope it will be way up. If i were you, i would just wait for a big red candle and then try to by at the bottom. Maybe $800/btc is good? K: The part that sucks is that it seems like BTC value works so hard to creep up and up slowly, and right when it seems like it is going to pick up some momentum, BAM! More bad news comes out and slams the market. This cycle seems to keep repeating over and over right now… 1/9/14 K: I got 2 more btc :) 1/27/14 D: Sorry, haven't check this email account for a few weeks. Been working a lot of OT. What price did you buy in at on 1/9? I just sold a majority of my coins for cash. I picked up 3 LTC at 19.50 though. What's gonna happen 2/1/14? Also, do you know how long it would take for a tax return check if you have your taxes in prior to the 31st? I finished those 2 weeks ago if it matters. The other day the dow finished pretty low. Do you have any thoughts about the US economy over the next 6-12 months? K: What’s up man…huge dump off of BTC right now on almost all exchanges (except gox which is bs anyway). I bought some more LTC at around $19 too. I am holding all for long haul, although it would have been profitable to sell this morning, and re-buy after this dump off. I have no idea what is going to happen on 2/1. Last time when senate met, everyone thought the party was over, and then there was a huge rally in prices instead. I am trying to figure out the right price to buy more btc right now… what do you think? D: Sorry. Copied and pasted instead of attaching the pic. I think we'll have to see if it breaks that support. What about the arrest of that guy at bitinstant? *attaches picture of BTC 4h chart with a random line pointing downward K: I don’t think that one arrest will tank the market like that. I am wondering if the confiscated silk road funds are being trickled through the exchanges by the feds. It seems weird the sell off right now. It almost seems systematic. Like there is a huge sell off that clears all the buy orders. Then it is calm for a few minutes, then repeat. Really strange… D: But I wonder how they brought charges on him? Could they hold anyone accountable who sold BTC to a person using it to buy drugs on silk road? If the Feds are selling that would explain it. They seized 144,000 and they're saying the owner of silkroad may have 600,000 stashed in a wallet. K: I think the number is more like 30,000 btc D: The spokesperson says the approximately 26,000 Bitcoins seized are just the ones that were held in Silk Road accounts. In other words, it’s Silk Road users’ Bitcoin. The FBI has not been able to get to Ulbricht’s personal Bitcoin yet. “That’s like another $80 million worth,” she said, explaining that it was held separately and is encrypted. If that is indeed what he’s holding, that’s close to 600,000 Bitcoin all together or about 5% of all Bitcoin currently in existence. (Update 10-25: The FBI says it’s seized 144,000 Bitcoins, or about $28 million, that it believes belong to Ross Ulbricht.) K: I don’t understand how they were able to confiscate them, when bitcoins are not yet considered money, so they shouldn’t fall under forfeiture rules… 1/17/18 - D: Wish you the best K and hope you held those coins longer than I did. TLDR: Meet a friend in December 2013 that gave me advice to buy and hold BTC long term. This is one of our email threads from around that time, edited to remove personally identifying information. I used all my bitcoin for pizza following the fall of Mt. Gox and the subsequent bubble burst.
[uncensored-r/CryptoCurrency] I've made over $500K in crypto. Here are some good resources and advice, especially for the new i...
The following post by arsonbunny is being replicated because the post has been silently removed and some comments within it have been openly removed. The original post can be found(in censored form) at this link: np.reddit.com/ CryptoCurrency/comments/7pgh7u The original post's content was as follows:
Since December 2017 we've seen a massive influx of new investors in the crypto space, and the inflow of their fiat has lead to a massive boom for altcoins. This has inflated values and with many making astronomical fast and easy gains by simply gambling on symbols on an exchange, I am seeing the market reward the very worst type of behavior for investors. More and more in this sub I see people bragging about how they randomly threw money at some shitcoin they didn't even research but just saw shilled here and made 3x on their $500 investment, as if that's something to be encouraged or celebrated. This type of investment style will not last and will only lead you to lose whatever gains you have made recently. I have been holding Bitcoin since 2013, through the Mt.Gox disaster and only sold recently for over $470,000 in profit. I held Ethereum for almost 2 years before I decided to take $32,000 in profits recently. A 5 year investment window may seem like an eternity to the largely young investors that are coming in now, but it really isn't that long. For crypto to be a truly life changing investment for you, you have to get over the "get rich in the next month" mentality that is rampant now and get past the lambo psychosis stage. First of all here are some good tools that I've found have helped me a lot: Market News and Tools
http://cryptopanic.com - An aggregator of various crypto sites and news, filterable. I use the pro version to customize the feeds but the free version is good enough for most.
http://coinmarketcap.com - Not just for checking prices, they also are the most convenient way to start your research as they have the blockchain explorers, official website links and also a useful API that can be linked to Excel.
http://cryptomaps.org - Visualization of price across different segments, primarily hashing functions and ICO release dates
http://onchainfx.com - A better version of coin market cap, has all sort of columns and you can add flags. Only downside is it only has 61 cryptos, but its always adding news ones.
BitcoinTalk Forums - Probably my favorite place to discuss crypto. Much more intelligent discussion than in this sub.
Steemit and Medium have tons of great blogs about crypto, find what alts specifically interest you there.
Follow developers on Twitter, Reddit has decent communities for each coin, /biz/ is for pink wojaks, memes and pumping
Delta - get this app, its awesome and better than Blockfolio
There are online sites like AltPocket and CoinTracking that will do portfolio tracking but I haven't found any I would recommend, I prefer to use a CoinMarketCap API Excel tracker which automatically updates prices and consolidates everything. Excel is still the best and most flexible thing to use by far and you can customize it infinitely to your liking.
Basic but Important Advice
In addition I've come up with 10 simple advice points that will take you quite far and will make you much more of an intelligent crypto investor: 1) Don't have more than 5-10% of your entire investment portfolio in crypto, and only invest what you can afford to have locked in for the long term. We are definitely due for another large correction, so you must be comfortable with losing 80% of your portfolio value in case of a crash and sitting back and letting it slowly recover. Personally I would recommend that once you double your profit, pull out the principal so you are only playing with profits. 2) Don't chase a pump Never buy on rapid upswing on the candlestick chart if you're not sure why it happened and can't figure it out. The reason is likely that it is a Pnd. PnD is "Pump and dump" and it refers to a trading scam where people organize to coordinate the laddered purchase of an asset, then wait for others to come in at some delay and further increase the price before coordinating the unloading of their position once a specific price target is reached. This is illegal in the stock markets, but since cryptomarkets are unregulated such schemes are rampant. There are many PnD groups and today they are largely organized on Discord channels. They are now structured into tiers where the top tiers get a signal earlier than the bottom tiers and usually by the time the bottom tiers get the signal its too late, so unless you pay money to part of the top tier or have a connection with the admins its not even profitable. They are bad for the market as a whole and they prey on those who are looking for short term moons to latch onto. Don't look for things that you think will moon today, look for investments. 3) Holding will give you more returns over a year than day trading. You will find that most people who made six figures or more in crypto did it by holding over the long term, very few get rich by day trading. That said you should definitely learn a few indicators to see if you're getting in at a reasonable entry point. I find that the MACD (moving average convergence divergence), RSI (relative strength index), market depth and support-resistance lines are the most useful indicators for crypto. MACD is useful for looking at where the long term price should be in divergence to the short term movement, RSI gives you an 0-1 rating of how overbought/oversold it is and support-resistance lines gives you a floor and ceiling for how high it will move in your buying period. If you do short term trading, do it when you have high certainty that a specific news will lead to an increase. Some of these specific events are: upcoming roadmap item releases, fork airdrops, exchange additions and partnerships. For example, in mid-December it was first announced that the Bitcoin Private fork that is upcoming would release an 1:1 airdrop of BTCP to holders of ZClassic because Bitcoin Private would use the same ZSnarks technology. At this time ZCL was only a few bucks, and thus this news has made ZClassic an attractive short term buy as there would be demand for people to have it purely to get free Bitcoin Private once it launches. Short term buys like this are smart moves based on some underlying value assumption being changed, trading purely on volume and patterns is generally akin to gambling on markets that are as inefficient as most cryptoassets. 4) Take your time and research what you are putting your money into. I cannot stress this enough, you are buying an asset with your hard earned money, and it should have some utility. Start by reading the whitepaper that is on the main site for the coin. You can avoid a lot of scams by simply critically evaluating the question: "Why does this coin exist?" Is it simply trying to apply a blockchain to something that doesn't need it or is there a transactional inefficiency/problem that the unique properties of the blockchain can solve? For example, the blockchain is immutable so the use case of tracking designer luxury goods across a supply chain and guaranteeing authenticity of a item makes sense. On the other hand trying to push the blockchain transactions into dentistry makes little sense. Designer good companies have a problem with conterfeit goods entering the supply chain and need some solution, dentists don't have a problem with charging people on their VISA for fixing cavities. Ask yourself what value the actual token would have in the ecosystem its part of. Does it pay out some kind of dividend like some coins, or is its value in that its used as part of transaction fees and is thus being burned? You can make a simple checklist for every crypto and just answer these questions to yourself for each coin you look at:
What is the problem or transactional inefficiency the coin is trying to solve?
What is the Dev Team like? What is their track record? How are they funded, organized?
Who is their competition and how big is the market they're targeting? What is the roadmap they created?
How will they attract their target market, how is their marketing?
How does the coin derive its value? Is there some sort of dividend structure, profit sharing plan, or is it a store of value within a digital economy? What is the float schedule like going forward (ie. how many coins will be released or burned)?
5) Learn to recognize FOMO when it arises within you If you ever feel this itch to get in on an rapid upswing because you don't want to miss out on some new development that is causing it, stop yourself from knee jerk reacting to this feeling. This is called FOMO: "Fear of missing out" and its what drives the market now. It happens to everyone and it leads to emotional investing and knee jerk buying/selling. 6) Recognize that lots of people actually are also losing money. R...
03-27 10:33 - 'The Fastest and the Safest Crypto-Trading Bot - WolfpackBOT' (self.Bitcoin) by /u/CapablePersonality3 removed from /r/Bitcoin within 46-56min
''' [link]3 Trading robots are software programs that communicate with numerous financial markets and execute the trading automatic for users. The software makes investment decisions based on an algorithm that examines and evaluates market data. Typically, the data analyzed is trading volume, number of orders, price and time. With passing years, trading bots are becoming mainstream. Why Choose Cryptocurrency Trading Bots? Trading bots enable regular synergy with the financial market, thereby eliminating a majority of the tedious tasks of the investors. Users can also seamlessly adjust the software to monitor, analyze, and trade multiple assets in different markets. Additionally, this trading software is emotionless. Therefore it won’t be influenced by the emotional fluctuations that often affects the trading decision of human traders. It has the potential of trading more efficiently than a human as it is capable of gathering and interpreting an enormous amount of data quicker and execute order much faster than human traders. WolfpackBOT- An Out-of-the-Box Trading Bot WolfpackBOT is a cryptocurrency trading software that is engineered to provide traders with mathematically precise and faster trade via proprietary trading algorithms, proprietary “Werewolf” Trading Analysis configurations, and tailored settings based on a unique trading style of a trader. It also allows users simultaneous trading access to all compatible cryptocurrency exchanges available to the bot. Wolfcoin – Fuel to the WolfpackBOT Wolfcoin is a currency that is also referred to as the utility coin which is redeemable for WolfpackBOT subscriptions, the WolfBOX Console, [WolfpackBOT]1 and Wolfcoin apparel and merchandise. WolfpackBOT – Backed by Robust Features Following are the trading features that makes WolfpackBOT stand out from its competitors:-
Multiple TA Indicators
WolfpackBOT offers multiple Technical Analysis indicators, oscillators, configurations, and settings that are available in the Automated Cryptocurrency Trading Bots landscape. The software also extends Bollinger Bands, Double EMA, Elliot Wave, EMA, EMA Cross, Fibonacci Sequence, KAMA, MA Cross, MACD, RSI, SMA, Stochastic, Stochastic RSI, and Triple EMA.
WolfpackBOT features cryptocurrency shorting features that empower users to short their positions and obtain them back at lower prices, thereby optimizing their returns.
It shows the performance of the positions via a proprietary Hidden Bear Divergence Indicator. Crash Protection allows users to automatically scan and convert their positions to a steady coin, later buy them back into base currency, and resume trading.
All Trading Pairs
WolfpackBOT allows customers to trade on various cryptocurrency exchanges simultaneously. Users can use a single bot to trade on multiple exchanges with one subscription package.
Live Candle Scanning
Candlestick charts are effective technical tools that combine data for multiple time frames into individual price bars, making market analysis more efficient. WolfpackBOT offers live candle scanning and automatically detect patterns.
They are essentially copyrighted trading algorithms that harness proprietary optimum settings to offer users a rewarding trading experience. Werewolf configurations can be modified depending on the existing market trends.
It a simulation of trading that allows users to test strategies to interpret their respective market performance in real-time without risking funds.
Market Orders, Limit Orders, and Sniping Order
Market order covers buying and selling of order that is immediately affected at market prices. A limit order, on the other hand, is buying and selling of order at a fixed price. Lastly, a sniping order is a buy order that users acquire on a specific tick. WolfpackBOT – Making Trading Effectively Automatic [WolfpackBOT]1 is a next-gen cryptocurrency trading software facilitating users to execute trade faster by leveraging proprietary trading algorithms, proprietary “Werewolf” Trading Analysis configurations, and personalized settings catering to traders personal trading style. The software also enables trading access to all compatible cryptocurrency exchanges that are available to the bot simultaneously, thereby rendering traders precision, versatility, and effectiveness. ''' The Fastest and the Safest Crypto-Trading Bot - WolfpackBOT Go1dfish undelete link unreddit undelete link Author: CapablePersonality3 1: wol*pac*b*t.co*/ 2: wol**ackbot*c*m/ 3: i.**dd.it*jvr1*yqps*o**.png Unknown links are censored to prevent spreading illicit content.
Chart pattern analysis done by a computer. What do you think?
Using historical patterns to project prices
An Introduction to Nvest’s Pattern Finder tool Crypto traders today have a plethora of information. Data is streaming 24/7 and the charts are always updating (though some more than others). While some traders like to reference classical charting patterns, like Peter Brandt and #Classic_Charting 101 or Bulkowski’s Pattern site, other traders like to rely more on personal experience, perhaps because they trade intra day and they know that many patterns that work well on daily bars have limited efficacy on a lower time scale. Still other traders like to draw lines and indicators to help give them set levels to trade off of. Really there is no correct answer and everyone has to find their own style. The problem with technical analysis (TA) specifically when applied to finding price patterns, is that 1) different people come up with different conclusion because the interpretation of a chart is not so straight forward (is it an ascending triangle, a head and shoulders, a support level etc) 2) even if a chart pattern is correctly idenfied, going to the next step, ie using it for a price projection or in a trading strategy is often ad hoc. I often see stuff like this floating around ‘expert’ TA practitioners
‘Based on my reading of the head and shoulders, there is a 70% chance that it breaks the neck line and then price will move 10% lower, equal to the measured move of the Head and Shoulder pattern height’
While I trust in human intuition, I also believe that being objective, and using reproducible rules is the way to go, especially when its related to trading and investing. We humans have an innate ability to find patterns in the world. We see relationships and it is the basis for how we learn. But unfortunately the human mind uses many heuristics, or short cuts. Indeed the entire field of behavioral finance has emerged because many of us have realized that our animal brains sometimes make predicable mistakes.
1.1 The Rise of Bitcoin 1.2 Bitcoin made simple 1.3 How does all of this work? 1.4 Using Bitcoin 1.5 What makes Bitcoin so special? 1.5.1 Banking the world 1.5.2 Programmable money 1.5.3 Modern hyperinflation
Chapter 2: The Key to Successful Investing Chapter 3: Basics of Technical Analysis
3.1 Why does TA work? 3.2 Psychology of the market 3.3 Candlestick patterns 3.4 Support and resistance 3.4.1 Support 3.4.2 Resistance 3.5 “Longs” and “shorts” 3.6 Market conditions 3.7 Trend lines 3.8 Price channels 3.9 Chart patterns 3.9.1 Double Top and Double Bottom chart patterns 3.9.2 Head and Shoulders chart pattern (H&S) 3.9.3 Triangle chart patterns 3.9.4 Wedge chart pattern 3.9.5 Bearish and Bullish pennants 3.9.6 Flags 3.9.7 Rectangle chart patterns 113 3.10 Moving averages 116 3.11 Moving Average Convergence Divergence 121 3.12 Bollinger Bands ® 124 3.13 Stochastic Oscillator 126 3.14 Relative Strength Index (RSI) 128 3.15 Ichimoku Kinko Hyo 130 3.16 Fibonacci 134 3.17 Summary and final notes 140
Chapter 4: Do Your Own Research (DYOR) 145
4.1 Important websites 147 4.2 Picking the right coins 157 4.3 Researching projects 162 4.4 Averaging down 166 4.5 Break even 167 4.6 Blogs, YouTube and social media 170 4.7 Bounty campaigns 183 4.8 Initial Coin Offering (ICO) 192
Chapter 5: Portfolio Management 205 Chapter 6: Passive Income 213
7.1 How to build an efficient mining rig 270 7.1.1 The frame 271 7.1.2 The motherboard 272 7.1.3 The PSU (power supply unit) 274 7.1.4 The GPUs (graphics processing unit) 278 7.1.5 Additional hardware 282 7.1.6 The operating system 285 7.1.7 The mining software 290 7.2 Cloud mining 301
Chapter 8: Proof of Stake 307 8.1 Energy efficiency 314 8.2 Increasing decentralization 317 8.3 Rendering 51 percent attacks more unlikely. 319 8.4 DPoS, LPoS, TPoS 322
Chapter 9: How to Safely Store Your Coins 328 9.1 Exchanges 328 9.2 Your login credentials 330 9.3 2-Factor authentication 332 9.4 Keeping your computer secure 334 9.5 Using a VPN 339 9.6 Not getting scammed 345 9.7 Keeping your private keys secure 357
Chapter 10: Is Everything Just One Big Bubble? References I would love to hear your feedback!
How to Trade Bitcoin Part 3: Beginner’s Technical Analysis
The third part of our how to trade bitcoin series covers the basics of technical analysis. The post begins with the theory and principles of technical analysis, then covers support and resistance patterns. Introduction What You Should Already Know Before embarking into the world of Technical Analysis (TA) you should be familiar with the basics of trading that have already been covered in our how to trade bitcoin series. Part 1: Getting Ready to Trade Bitcoin The first part covered the basics of Bitcoin, trading terminology and how exchanges work. Part 2: Making Your First Trade The second part covered how to read charts, how to spot trends using moving averages and the MACD, and lastly how to place a trade. It is recommended that you are familiar with these topics before continue to learn more about technical analysis. Key Terms Explained Technical analysis — the process of analysing a financial assets’ price, volume and volatility data and patterns with the objective of predicting future trends. Fundamental analysis — the process of analysing a financial assets’ non-chart based data. This would include data such as a company’s revenue, price-to-earnings ratio and business strategy. For bitcoin, fundamental analysis would be studying adoption rates and the health of the ecosystem. Blockchain.info’s charts are great for a fundamental analysis of bitcoin. Support — a specific price or a price range that a financial asset rarely falls below. Below is an example of current support lines for bitcoin. Generally, the more a support line is tested, the stronger support at that level becomes. http://i.imgur.com/VfwsE8Z.png Resistance — a specific price or a price range that a financial asset rarely rises above. Below is an example of current resistance lines for bitcoin. Generally, the more a resistance line is tested, the stronger resistance at that level becomes. http://i.imgur.com/jyUq7DC.png What is Technical Analysis? Theory and Assumptions of Technical Analysis Technical analysis is founded on the belief that a price is determined by every piece of relevant information that is known about a financial asset. This makes price, and its historical trends, the most important piece of information for traders. By conducting technical analysis to make price predictions, traders make two key assumptions. Firstly, it is assumed that prices follow trends. These trends are driven by the human psychology of traders. One theory is that technical analysis works as a self-fulfilling prophecy: if enough traders spot a signal that suggests the price will rise, everyone will begin to buy, causing that predicted price rise. Secondly, it is assumed that history tends to repeat itself. That is, if the price of bitcoin is currently falling it is assumed the likelihood of a further price decline is more likely than a price rise. When this is not the case, it is normally attributed to a ‘trend reversal’. Why Bitcoin Traders Care About Technical Analysis Technical analysis is by far the most popular form of analysis conducted by bitcoin traders. This is primarily because the price of bitcoin tends to be driven by cycles of fear and greed. Consequently, the people trading bitcoin create price patterns which can be studied through technical analysis. The aim of every trader is to be one step ahead of the crowd. http://i.imgur.com/nlOvbhg.png Conversely, there is a lack of information for fundamental analysis of bitcoin. Unlike companies, there are no income statements, balance sheets, business strategies or management team to consider. This places greater importance on technical analysis for traders. Limitations of Technical Analysis As with any investment strategy, there are risks and limitations. There are two alternative theories that infer technical analysis is not a legitimate method for predicting future prices. Efficient market hypothesis claims that it is impossible to beat the market — or in other words, be one step ahead of other traders. This because not only do prices reflect all relevant information, they instantly change as more information is revealed. The end result of this is that a financial asset can never be under or over valued. Therefore, price data is not useful for traders. Random walk hypothesis claims that prices of financial assets move randomly. Hence, if there is no real trend, technical analysis has no strong evidence to make forecasts from. Support and Resistance How Support or Resistance is Formed There are numerous factors that can cause support and resistance to be formed. Let’s take a look at some practical examples that have occured with bitcoin. Psychological price points As markets are made up of people buying and selling, prices tend to converge around round numbers or meaningful numbers. The below graph shows the resistance bitcoin has faced when attempting to break above $400 and $300. http://i.imgur.com/NaiG9o7.png Interestingly, a lot of bitcoin traders have observed how the price used to become ‘sticky’ around to $666. This is a good example of retail traders acting irrationally and deliberately setting buys and sells at the number of the devil. http://i.imgur.com/CgWY1kq.png Multiple Highs When a price reaches a high multiple times, resistance is formed when traders develop the belief that the price will continue to fail to break that price or resistance line. This can be seen in the 2014 bear market, where the price followed a series of downtrends that eventually became weaker over time. http://i.imgur.com/2NxInj9.png Multiple Lows Similarly, when the price reaches a low several times traders begin to expect the price to continue to fail to fall below that price. This can be seen throughout 2014 at three key resistance levels. http://i.imgur.com/MZyXBzO.png Former Resistance Becomes Support (or vice versa) When a support or resistance line is broken, it is possible for the influence of that line to be reversed. In the below example the price encounter resistance at $280 during the April 2013 rally. This then acted as support in October 2014. But once this support was broken in December 2014, this price has been acting as resistance. It is quite likely that the peak of the April 2013 rally has a lot of physiological influence over traders. http://i.imgur.com/tSCTmin.png How Support or Resistance Influences Future Price Patterns It is normally the combination of support and resistance which influences future prices. When both support and resistance are in effect, which is nearly always, the price is said to be inside a ‘trading zone’. These trading zones are monitored very closely by bitcoin traders. Let’s take a look at the current trading zone influencing bitcoin’s price. http://i.imgur.com/qIxVIg9.png After rallying to $300, the price of bitcoin is currently correcting. The support the bottom support established in January and June has not yet been tested. Hence we can expect the price to trade within the two support and resistance lines between now and October. If the price breaks above the resistance line, this would be a bullish signal. If the price falls below the support line, this would be a bearish signal. Eventually the support and resistance lines converge, this tells us that we can expect a bullish or bearish price movement to occur sometime before or at this point. How to Draw Support or Resistance Lines Now is a great time to try and draw your own lines. Simply follow the below instructions to get started on BTC.sx. 1) Click on the small arrow at the edge of the chart. http://i.imgur.com/rBB5Wlt.png 2) Click on the line tool, which is the second from the top. http://i.imgur.com/SdalLdh.png 3) Click once on the graph to start the line, and click again to end the line. http://i.imgur.com/lW29ayh.png Additional tips: Hold shift when drawing the line to make it straight. Draw your lines following the ‘line’ part of the candlesticks. These are known as wicks and represent the highest and lowest price traded within the candlestick’s time period. Support and Resistance Patterns Now we have covered the basics of support and resistance, we will now look at more advanced support and resistance patterns. These are generally combinations of support, resistance and trading ranges. Tops and Bottoms Double top A double top is considered to be a bearish indicator. This was observed during the December 2013 rally. A double top gives traders the opportunity to go short, which is possible on BTC.sx, at two key moments. Firstly, when the price fails to break upper resistance on the second attempt. Secondly, when the price falls below the first layer of support after the second top. These shorting opportunities are indicated by the yellow circles. http://i.imgur.com/luUJXz9.png Double bottom A double bottom is considered to be a bullish indicator. Bitcoin has never recorded a double bottom, but the downtrend during the Fall of 2014 is a close representation. A double bottom gives traders to go long at two key moments. Firstly, when the price fails to fall below on support the second attempt. Secondly, when the price breaks above the first layer of resistance after the second bottom. These opportunities to go long are indicated by the yellow circles. http://i.imgur.com/e6sPaiP.png Head and Shoulders The head and shoulders pattern is a bearish signal. This can be spotted when a peak is preceded and succeeded by two smaller peaks. This gives the formation a ‘head and shoulders’ resemblance. The neckline is the level of support formed between the first and second shoulder. http://i.imgur.com/ykVhxDs.png In the above example, traders have two opportunities to go short. This is firstly at the second shoulder. This is to profit from an incoming drop that is normally equal or greater than the distance between the head and neck line. The second opportunity to go short is at the neck line. This to profit from the recently formed downward price trend. Cup and Handle As the name suggests, this is where the price follows the formation of a cup and handle. This considered to be a bullish indicator — a great opportunity to go long. An important consideration when looking for this signal is that the ‘cup’ part of the pattern should not be a V shape. Ideally, the cup should have a round or flat bottom. http://i.imgur.com/ROnysWo.png A trader should go long at the point at which the price leaves the cup and begins to follow the handle. This area has been marked by the yellow circle. The length of the rally after the price leaves the cup can be hard to predict. However, if the price leaves the cup with high volume, it should give a trader that a sustained rally is likely. The lack of volume in the above example explains why the handle rally did not last too long. Flags The flag is a short-term indicator which occurs when the price experiences a vertical price rise, followed by a period of consolidation. The flag indicator is used to predict the continuation of a trend — not the reversal of a trend. The vertical price movement is considered to be the flag pole, and the consolidation period the flag. The flag pole should be recorded with high volume and the consolidation period should experience low volume. Additionally, the flag should be slopping slightly downwards. http://i.imgur.com/aEfpJeJ.png A flag can provide a bullish buy signal in the right circumstances. This is when the price remains inside the flag for 8–20 candlesticks then exits at the top after low volume. This is demonstrated in the above example — a trader should be going long at the yellow circle. Pennant A pennant is very similar to a flag. The only difference is that the consolidation period follows the shape of triangle, instead of a rectangle. The triangle shape is typically formed by traders taking profits after a price rally. http://imgur.com/udP0JFL Like the flag, a trader can profit from the continuation of a bullish trend by going long when the price leaves the top of the pennant. This area has been indicated with a yellow circle. Wedges Wedges are common price patterns and they can be used to spot bullish and bearish trend reversals and continuations. The two main types of wedges are rising wedges and falling wedges. Rising wedge A rising wedge is formed when the price consolidates between two upward sloping support and resistance lines. This is bearish signal — it indicates an uptrend is about to reverse or a downtrend will continue. It is important to check that the support line is rising steeper than the resistance line. This is a key requirement for the wedge-shaped indicator to be drawn accurately. http://i.imgur.com/BHVhGQY.png In the above example, we have a wedge indicate a trend reversal. Traders should have gone short on BTC.sx after the price fell out of the wedge. Interestingly, we could have also drawn a bearish pennant immediately after this wedge, which would have further validated a decision to go short. Falling wedge A rising wedge is formed when the price consolidates between two downward sloping support and resistance lines. This is bullish signal — it indicates a downtrend is about to reverse or an uptrend will continue. Opposite to the rising wedge, the resistance line should be falling more aggressively than the support line. http://i.imgur.com/fLcCLNp.png The recent Grexit rally was a great example of wedges in action. Firstly, two falling wedges developed. This should have given traders confidence that the rally still had steam while traders took profits. However, towards the end of the rally, a rising wedge developed. This signalled that the rally was beginning to lose its pace and that a trend reversal was likely. Conclusion You should now be familiar with spotting common chart patterns and drawing them. It can be difficult spotting your own signals to begin with, but overtime it will become second-nature. If you want to learn more about technical analysis, make sure to look out for our next post on advanced indicators. This will include indicators, such as Ichimoku Clouds, RSI and Bollinger Bands. Make sure to follow us on Twitter and like us on Facebook for future updates. Written by Joe Lee, BTC.sx / Magnr CEO. Joe first discovered Bitcoin in 2011 and built his own trading bots turning an initial $100 investment into $200k. He then turned his attention to building trading infrastructure and BTC.sx was born. After gaining rapid traction, Joe left his investment banking job to focus on BTC.sx. If you want to use the power of leverage / margin trading to increase your potential returns, check out BTC.sx. We offer up to 10x leverage and direct market access to Bitfinex, Bitstamp and itBit. Alternatively, if you prefer more passive investments, check out Magnr. We provide interest-bearing investment accounts for bitcoin, with a promotional interest rate of 2.18% AER. BTC.sx / Magnr is not a financial advisor. The information contained in this article is for educational purposes only. Trading bitcoin carries high level of risk and BTC.sx / Magnr accepts no responsibility for any losses incurred.
Technical Analysis Weekly Review: 2. The Trend. TL;DR
Markets historically follow patterns: they trend. Trends don't typically continue for long periods of time without interruption, and are marked by short periods of correction, called retracements.
Drivers nudge the steering wheel left and right to maintain their course even on a straight road - so do markets in their price movements adjust their course as they move.
"Befriend the trend." - Rockefeller
Trend confirmation is tricky and requires more information than what a single indicator can give you. Among these, you must be able to see that volume is driving the price movement. (More volume = a stronger trend, less = weaker.)
Technical Analysis Weekly Review: 2. The Trend.
"A trend is a discernible directional bias in the price -- upwards, downwards, or sideways[...] The trend is your friend." - Rockefeller
Markets follow patterns called trends, where the price of a security continues along a common path, whether up, down, or sideways (where it stays more or less in the same price area). Is the price currently trending? It doesn't always trend, but when you look at a chart, that's what question you want answered first. Then ask, is it trending up or down (is the price going up, or going down)? This is also where the terms "bull" and "bear" come from. A bull market is one that is increasing in price, with an uptrend; a bear market is the opposite, with a downtrend.
As you can imagine, trends make it easier to predict where the security's price will land in the future. Buying at a low price and selling at a higher one is a solid plan of action when a security's price is on a consistent uptrend. Buying a security while it is currently in a downtrend, on the other hand, is risky. Therefore, technical traders will typically focus on identifying a bullish trend early on, buy in early, and watch as the price rises beyond the value of what they paid for it. Using indicators like support and resistance lines, traders can then plan for their target price, which is where they will sell their security, and lock in their profits. (We'll discuss support and resistance in next week's post.) Traders can also "short" a security - meaning, they sell a security in the early stages of a bear trend, in the hopes of buying the same security back at a lower price in the future. This is of course risky, as they can wind up selling a security that goes into a trend reversal and increases in price, forcing the unfortunate trader to buy back in at a loss. There's a reason this is called "catching a falling knife," and is commonly done during periods of retracement.
Trends rarely continue for long periods, and even major trends will eventually have retracements. Also called corrections, retracements occur where the market recognizes that the price movement has gone farther than it naturally should have, and "corrects" back to an equilibrium. This can happen on uptrends and downtrends alike, where the market moves against the original trend's direction (uptrends can correct back down, and downtrends can correct back up). There is no reliable rule for predicting the end of a retracement - that's where we attempt to use various technical indicators to help guide us into a probable position. In future posts that focus specifically on certain indicators, we'll look at the strengths and weaknesses of using such them in determining trends, retracements, and full reversals.
Retracements are generally temporary, as opposed to trend reversals, where the primary trend completely switches direction.
Earlier in January we saw a pretty drastic downward trend reversal following a sudden uptrend, marked by the red box. Not all trend reversals are this sudden or this large - but they do occur.
Note that this behaviour sounds similar to a price bubble event: a security grows in price at an incredibly rapid pace (beyond a sustainable rate), and what follows is a retracement/correction of impressive ferocity. That is what's called a spike, followed by a crash. Like a bubble growing until it can't sustain its own size, and pops.
As before: blue box indicates the uptrend (in this case, a fast and largely unforeseen rise in value to an all-time high of ~$250 on the BitStamp exchange) followed by the accompanying crash in the red box (where the value fell back to pre-spike values just over $50/BTC).
Part of what separates a spike & crash from an appreciation & retracement should be pretty obvious to the naked eye. Growth/retracement is a natural market occurrence in the process of setting the price, and spiking/crashing is an unnatural event, often driven by news and media "hype," where everyone expects to get rich quick. As mentioned in the first Weekly Review post, many of us Bitcoin enthusiasts found out about Bitcoin through the buzz surrounding one of the various Bitcoin price bubbles, and still bear the painful memories of watching the red candlesticks get taller and taller. This is the other part: the emotional feedback loop. The buyer confidence is so strong that rational trading practice is thrown out the window, and even criticized by those who are holding the security - until after the market returns to the normal "mean" price range. Hence: Hindsight is 20/20. Following the news and posts by the community can be a great help in identifying bubble-like market sentiment.
Confirming a trend is easier said than done. A trend confirmation is when a trader has enough evidence shown by their analysis to say that the market is currently in a price trend, and can take action (or not take action) based on their conclusions. This is where volume makes a major statement, as volume is the strongest validator of price movement. After all, the more people (and the more money) moving in the same direction, the stronger the flow will be, and the more likely it is that they will continue to move in that direction. (Inertia applies here!)
Naturally, there are ways that help gauge whether a price movement has healthy volume support or if it's just a fluke by a small group of transactions.
The red boxes featured here show low volume, and coinciding weak trends. The first is a short-lived low-volume downtrend, followed by a short-lived weak-volume uptrend. The blue box in October 2013 shows much higher volume between each 12-hour timeframe, coinciding with a stronger bull trend from the low 100's to the low 200's..
If a price movement is conducted by a lower volume of transactions, that price movement can be broken easily by other transactions going the other way. Conversely, a higher volume price movement will be harder for the market to turn against. This is not always true (because vacuums don't exist in nature), so use your best judgment of a market's activity - consult the news, when in doubt. And, when not in doubt, still consult the news, just to be sure.
We'll look at more indicators to help determine if volume is above or below average (which will help to determine and confirm trends!), as well as support and resistance lines, determining breakouts (very tricky business), and incorporating more technical indicators into your trading plan. Disclaimer: As with all my posts, I do not intend to give actual trading advice as far as what decisions to make when. Also, my coverage is not all-inclusive, it just presents some information to you. I aim to teach you to teach yourself. This way, you can make your own educated decisions, and have most excellent discussions in /BitcoinMarkets. I won't "give you answers," but I will give you the means to find them yourself. Questions For You: When would you prefer to see TAWR posts in the sub - Saturday mornings, Friday nights, another night of the week? If you have no preference, I will continue to post them around Saturday morning, to give you something to read as you sip your coffee. Make money, spend wisely, always be learning, see you next week (or in IRC).
Hey bitcoinmarkets of reddit: I want to ask you something today. I am a trader in the stock and futures market for about 6 years. I like keep a blog in just about anything. I am a big supporter of bitcoin and I have mined some actually, but speculation is my specialty, and my question to you: Would bitcoin redditors be interesting in a stock blog with a focus on statistical analysis and technical patterns? If so, what do you like to see? If you are not familiar with statistical or technical analysis, here are 2 interesting examples: -imagine bitcoin prices are up 5 days in a row. WOW that is a big deal, market is bullish and everyone is making money. Now, part of statistical analysis is to answer the question: What is the likelihood that it will rise on the 6 day? or 7? or next week? This will give the trader an edge to plan out an exit strategy so it is important to understand from a statistical point of view. -Technical analysis is based on chart patterns. If you already know what candlesticks are, this should be a breeze for you to understand. A recent example of a technical pattern happened on the day mtGOX collapsed, bitcoin price pummeled on large volume overnight to 400 dollars. However, large buyers stepped in at those prices and bid it up to 520 dollars by morning. We haven’t seen sub-500 dollar prices ever since. The pattern for that day is called a hammer, a bottoming formation. Market bottoms sometimes coincide with major pessimistic news after a prolonged period of decline. A similar analogy in the stock market is that market bottomed in 7 days after citi-bank filled for bankruptcies on Feb 27 2009. I asked bitcoin first, they referred me to this subreddit, so I decided to ask before committing my time to backtest all the data. This will be a free open blog; any trader who is interested for a platform to share his idea is welcome to join as well; PM me. So what do you guys think? EDIT: Looks like I am gonna do it. the website is called http://www.Ibankbitcoins.com haha. Its gonna be heavily on trading bitcoins, technical and statistical analysis
Candlesticks open - close times: 5min: Sat, 03 Oct 2020 15:35:00 Sat, 03 Oct 2020 15:40:00 15min: Sat, 03 Oct 2020 15:15:00 Sat, 03 Oct 2020 15:30:00 For instance, you have to know all common chart patterns which are repeated frequently in the Bitcoin and altcoin charts. Chart patterns are specific candlestick formations, consisting of a range of candlesticks, building conspicuous figures in the chart. Dozens of bullish and bearish live candlestick chart patterns for the Bitcoin Real-Time index and use them to predict future market behavior. The patterns are available for hundreds of indexes in ... Patterns detected on the last closed/completed candlestick. 5min, 15min etc. means the chart timeframe/periodicity. Click on timeframe to see the pattern on chart. [ September 17, 2020 ] NYSE just launched bitcoin futures. What that means for crypto world Basics Of Bitcoin [ September 17, 2020 ] Bitcoin Economics Explained – Is Bitcoin For the Poor or Rich? Are Babies Dying? Bitcoin For Beginners [ September 17, 2020 ] Headlines: Twitter Accounts of Bill Gates, Elon Musk Hacked By Bitcoin Scammers Bitcoin Frauds And Crimes
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