Bitcoin
Bitcoin (BTC) Price Technical Analysis: December 8, 2017
Just three days ago in our last technical analysis report for Bitcoin, we mentioned the $12,000 mark as a potential new high for Bitcoin.
As usual, the bulls did not disappoint. Bitcoin not only surpassed the $12,000 mark, it went on to hit a new all-time high of $16, 666.66.
Bitcoin has now closed up on the daily chart the last thirteen of fourteen days, from a low of $7876.00 on November 24th.
Demand for Bitcoin seems to remain unimpeded in spite of the fact that over the past two weeks it has traded in a constant upward trend with no price down-swing to speak of.
Traditional markets would warrant profit -taking after such a sustained upward move.
However, most, if not all traders have come to the realization that the cryptocurrency market lies far outside the realm of “traditional.”
After all, when was the last time any market moved over $5,000 over the course of two days, as Bitcoin has.
Chart #1: Bitcoin Daily
The daily chart above (Chart #1) shows the very aggressive upward move for bitcoin. Today’s bar (December 8th) is showing a retracement near the 23% Fibonacci price retracement level, based on the sustained upward price move that commenced on November 13th.
Price has been fluctuating with all four data points of the daily bar above the 9-day moving average for the last 6-days, indicating continued upside momentum.
Volume continues to be strong.
There is plenty of intraday volatility that traders can take advantage of, even with price consistently so near the all-time high.
The 15-minute chart below shows some price action patterns that make for good long entry points immediately following price dips.
Chart #2: Bitcoin 5-Minute
The hand pointers in the 15-minute chart above point out instances in which price action made a sizable downward price swing (in the instances above, $300 was the smallest downswing), and was followed by and an upbar.
Taking a long position at the open of the next bar resulted in a successful trade in the last six times the pattern showed itself.
The very last instance (furthest to the right of the chart) still remains to be determined if the trade is successful.
The last price dip shown is the retrace from the high to the 23% Fibonacci price retracement level shown by the light red shaded area).
This pattern seems to be fairly consistent as an intraday long entry signal.
A protective stop should be placed no lower than the low of the downward price swing.
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Image courtesy of coinmarketcap.com
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.