During August 2017, TradingMotives pre-warned that a larger correction was imminent in Bitcoin. This was covered in detail in the August video reports and in Chart Room posts. Price action on 3rd September then confirmed a high was in place for Bitcoin and that a correction was likely unfolding from that high (1st Sept). As the signals continued to unfold during the first week of September, TradingMotives’ reports highlighted priority to monitor the first retracement within a red zone on the 240-min chart to see if sellers would appear.
That is exactly what happened with Bitcoin.
This is how it looked on the 240-min chart of Bitcoin in JPY. $XBTJPY and the red zone is shown. Sellers appeared and price declined more than 30% since hitting that red zone. Did you buy Bitcoin at that top?
The top coincided with significant exuberance about Bitcoins on social media, but TradeMotives’ Median Line Analytics was telling a different story. Price behaviour was changing on intraday timeframes and the signals could not have been clearer.
Did you know where to look for potential support for Bitcoin?
This daily chart of XBTEUR gave very useful information about potential support zones. Charts for the other XBT currencies were very similar too.
This median line has been in place since November 2015 and is still “active”. Price found initial support on the upper parallel from the September high. Price had reacted to that line several times before. When that support fails in the future, it will send a different message.
Where is potential resistance now?
Price broke down through some historical support levels (sliding parallels – SH’s) during the decline and the breached SH’s are being monitored for potential resistance. The pink one (SH1) is very important. This is tracked on intraday charts in the Chart Room.
What’s likely to happen next?
These examples show how two median lines yielded invaluable information for trading and investing. No one can forecast the market accurately 100% of the time, but with Median Line Analytics:
- it is possible to monitor changes in price behaviour which pre-warn about imminent corrections or resumption of trends
- it identifies likely zones of support and resistance in each timeframe.
TradingMotives regularly reports on a number of cryptocurrencies, including Bitcoin, Litecoin, Ethereum and Ripple. For more information, start a trial to see how Median Line Analytics cuts through market noise and decypher trends.