I would estimate 80% of my bitcoin trades have been wrong, despite having made a heap of money out of Bitcoin. That’s an important lesson for any trader: you can be wrong as many times as you want, but you need to learn to manage your risk well, and accept when you are losing quickly to minimise losses. Then when you’re right let those winners ride without getting too greedy.
So at the risk of looking like a moron again, here is another bitcoin chart from me. It looks to me like the 6500 support zone has held pretty well. I’ve used a support zone because the price doesn’t stick firmly to any point and instead bounces around that zone, as seen by looking at the dotted purple line I’ve put in to clarify the zone. I had been waiting for this pullback since about October and have lost a few times trading in and out in anticipation of it.
The red trend line has now been broken and a confirmation of that has occurred with the price breaking, the resting above it. Normally with my charts I like to keep trend lines green if I’m using a log chart but I’ll make an exception for clarity today because there are a few important lines here to point out. The two green trend lines extend from way back when and effectively draw the same trend from different points. The blue trend line which comes from the peak of the price action at about 20,000 is also exerting pressure on the price creating this decision zone.
Now maybe I’m a little premature in drawing that pitchfork in, and maybe I’ve used an incorrect basing point, but I think it could work. If we get a pop above the blue line it may be the case that price strengthens from here slowly rather than running like bitcoin has in the past. The price action is beginning to represent a professionally traded security these days hence why I’ve got a little more confidence charting it, and why as a result I think the pitchfork has a chance for working. It would take a pop above the blue trend line whilst remaining in the pitchfork for me to say that i’ve got this right. Otherwise there is something else going on that I’ve not picked up on indicating another fall to 6500 and potential failure of that line to lower levels.
So at the risk of looking like a moron again, here is another bitcoin chart from me. It looks to me like the 6500 support zone has held pretty well. I’ve used a support zone because the price doesn’t stick firmly to any point and instead bounces around that zone, as seen by looking at the dotted purple line I’ve put in to clarify the zone. I had been waiting for this pullback since about October and have lost a few times trading in and out in anticipation of it.
The red trend line has now been broken and a confirmation of that has occurred with the price breaking, the resting above it. Normally with my charts I like to keep trend lines green if I’m using a log chart but I’ll make an exception for clarity today because there are a few important lines here to point out. The two green trend lines extend from way back when and effectively draw the same trend from different points. The blue trend line which comes from the peak of the price action at about 20,000 is also exerting pressure on the price creating this decision zone.
Now maybe I’m a little premature in drawing that pitchfork in, and maybe I’ve used an incorrect basing point, but I think it could work. If we get a pop above the blue line it may be the case that price strengthens from here slowly rather than running like bitcoin has in the past. The price action is beginning to represent a professionally traded security these days hence why I’ve got a little more confidence charting it, and why as a result I think the pitchfork has a chance for working. It would take a pop above the blue trend line whilst remaining in the pitchfork for me to say that i’ve got this right. Otherwise there is something else going on that I’ve not picked up on indicating another fall to 6500 and potential failure of that line to lower levels.