Almost two weeks ago I predicted that the BTC/USD pair would continue to grow and I set my target level around the 253 area. (I know, I said 254.206, but it’s always a good idea to set your TP just a little bit lower). Today, on the 29’th of June, 2015 the target was reached and yet another successful trade has now been closed. The only thing that will keep bugging me is the fact that I couldn’t wait a few days into the evident correction and jumped on the train too early.
Clear bullish signals from Bitcoin
There’s no doubt that the cryptocurrency will climb even higher in the weeks to come. If we take a look at the weekly chart we can see that something big is about to happen.
There’s just no way this can continue for very long. Sooner or later a breakout of massive scale is going to happen. We are seeing the first signs already by looking at smaller time frames, mainly the 1H and 4H.
The correction that started some time on the 18th of June has now officially ended as we moved past the 250.810 range (the closing price for the 17th of June candle).
Our patience has paid off
It’s the middle part of March 2015 right now, the sun is shining and signs of a long winter are slowly fading away. The beginning of spring seems to have helped Bitcoin reach equilibrium against the US dollar. We have closed quite a few long positions since our last Bitcoin related article and now it’s time to sit back and observe the market a little closer because we are bound to have some drawback right about now.
Bitcoin price in March 2015
We are reaching closer and closer to the overbought market condition which most likely means that the price is bound to correct itself pretty soon. There are good solid support levels around 286.675 and 283.701 and it’s likely that the price is going to try those levels throughout the other half of March, 2015.
Unless something extraordinary happens in the crypto currency world I estimate another bullish run not before April. So bulls, I’m afraid you’re going to have to hold back for a while, but know this: your time will always come!
Bitcoin, you can do better than that
At the end of last month I posted a quick overview on the price of Bitcoin and what it may have in store for us next month. We’re currently three days into February and BTC has gained a measly 4,44% after some insignificant downward movement that didn’t break any major support levels for us.
Bulls getting stronger
The daily pivot point along with three solid resistance levels have all been broken through today and the market is continuously making higher lows which indicates that the bulls have finally gotten bold enough to start a run. My advice to bulls is to stop being afraid and move upwards horns first because February the 3rd has thus far been very friendly for us, bulls.
We can expect some drawback soon, but it is not likely to do much damage. If anything, we will have an even better opportunity to open another long position.
Slow and steady gains
The price of Bitcoin has been slowly recovering from the biggest drop we’ve seen since the year 2013. For the last ten days the price has steadily been moving upwards after a bullish breakout closer and closer to the resistance level at around 260.7 USD. I am fairly confident that at least up until this point there shouldn’t be anything that will stop the trend. We will most likely see some fallback around that level, but if all goes well the 260 USD mark will be broken at the end of January or early February.
Pivot point calculator
Since I have upgraded to a much more professional software, the MetaTrader 4, I now have a lot better indicators and overall user interface. I was looking around for a MT4 pivot point calculator script and I found some, but I can’t be sure how reliable they are or what algorithm they are using so for the time being I am still using this: Pivot Point Calculator. I will let you know once mine is ready- I am planning on making one really soon because it’s not really making sense to manually type in those pivots every morning, right?
Riding the bulls
The last few days have simply been amazing. On the 9th of November I published a short article about the bullish movement of Bitcoin and just three days later the price has reached $400 USD.
So what now? If you look at what happened on the 11th and 10th of November then you can see a great struggle between the bulls and the bears. The market was unsure how to react, but it is clear to everyone now that bulls have won this battle. At least for the moment.
Depending on how today’s candle will close we might see another one, perhaps a bit smaller to form tomorrow.
The only thing that bothers me is the RSI which shows that we are reaching the overbought market condition very soon. When this happens you can expect a short price decline all the way down to $360 area, but it’s unlikely to hit that low.
Why? Because not only did the Thailand mining rig burn down, the FBI closed a ton of hidden services recently which means that a great portion of Bitcoin users just lost their Bitcoins. This should in theory make the crypto currency even more expensive so the bullish momentum might just be gaining its strength to a much higher level that what we’ve seen this far in which case our next stop will be around $440-$450 and upwards!