Bitcoin technical: Guess where bitcoin has rebounded?




Anyone? Anyone?In my previous posts on Bitcoin, I relied on techniques only. Why? I don’t know the fundamentals that drive this pair. Yes… there may be a history of China. There are others that chime in with things like some of the protocol was voted and adopted by the minors (they might as well be speaking Chinese when they talk about it).
At the end of the day, this instrument is highly speculative. In a very speculative instrument (you can tell a highly leveraged market like the forex market), you’d better use something to define and limit your risk.
For me, that includes the 100 and 200 bar MA, trend lines, retracements fibonacci. They should not be ignored.

So looking at the 5 minute chart, the price of bitcoin has dropped below 100 and 200 bar MAs and kept a lid on the pair near those MAs on Thursday and today (see the blue and the green).
Prices have dropped from earlier today, and has formed a double bottom near the 4017. The market rallied from there, down from Thursday, settled down there (see the solid red line), and is then passed over this line, which was also the 200 bar MA (green line). The buyers — to this point — came in and pushed the price even higher. We currently have a trade near the highs of the day.
The 100 and 200 bar MA are now close risk for traders. This is the view from the 5-minute chart.
What about the view from the hourly chart?
Looking at the hourly chart below, the blue line represents the 100-hour MA. When the market was down, earlier today, we know from the 5-minute chart that the price has formed a double bottom. From the hourly chart, we see the reason why the market of the impasse. The pair has been close to 100 hours of MY. That MY come in 4013 at the time. The low reached 4017. This is pretty close to the high-flying cryptocurrency. The price has bounced back above 4200.

So where did the buyers of sticking a toe in the water? Against the 100 hour MA.
Why the fall stall?Because the traders could define and limit risk against the level.
What would probably have happened if the MA has been arrested?The price would probably have fallen over with the 200 hours of MY next target.
You need to live and die by the technique in highly volatile instruments like bitcoin. Traders who have followed the blue and green lines, ok…..



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