We looked at Bitcoin short term (4H scale) and we saw it going lower… Now, we are looking at the weekly chart and it isn’t looking good… But, before we get started.
Bitcoin (1W) Chart Signals & Analysis
- We are looking at a lower high on the weekly time frame. This weeks candle is about to close.
- Notice the last two red candles, both have a long wick pointing down and above average (high) bear volume .
- Bitcoin grew from $3120 to $13,800+, after such grow, a retrace is as normal as it goes.
- The RSI hit its highest level since October 2017, it reached overbought and now is looking down and bearish .
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.