Bitcoin price Review as of 02.02.2019

Cryptomaniac
By February 2, 2019 13:27

Good afternoon, dear reader. Today we will analyze the exchange rate of Bitcoin. Consider Bitcoin on the Poloniex exchange, actually on that exchange – where I actively trade. (An overview of the stock exchange is available on our site – Poloniex Cryptocurrency Exchange Review).

To begin with, it should be noted that the entire 2018 year and to this day on the global graph there is a down trend. “Bears” are clearly defending their positions, and news only helps them. (If you take for example the emergence of Bakkt … As if news is positive and should turn the market into cricket markets, but it’s not so simple. Entry into the market of large institutional companies will mean that their desire will be to buy Bitcoin at the lowest possible price, which in turn will hold back growth of currency, if it will not be cast even below …)

Based on the above, we understand that fundamental analysis does not give a clear idea of what will happen to Bitcoin. In this case, we turn to the technical analysis.

If you look at the graph globally (take a weekly timeframe), then we can see a clear triangle, rolled down. Today’s price rests on its upper side. From possible options for the development of events:

  1. If the top of the triangle is punched, then the price will go to the level of 4219 $ (which you can see in the picture)
  2. Possible offset from the upper side of the triangle, and further directed movement to the level of 3205 $.

So which of the variants of development is more probable? As for me, the option in which the price will come to $ 3205 looks more reasonable. In order to assume that the market will turn out too little reason (and trade against the trend is unreasonable ). On the other hand, if you look at the formation of weekly candles, you can see, the so-called pattern – “grave stove” with a large upper shadow. This means that the price is more likely to continue moving down.

Everything will be decided in the coming days. If the upper side of the triangle is punched, then you can open a long position (albeit only to $ 4219, since there is again uncertainty); and if the pattern and the overall trend work as they should, then the short position to the level of 3205 $ will be a priority. In addition, we should not forget about the global level – $ 2950, because at a further movement of prices down, we can come to this level, and even break it.

In the end, I would like to say – do not forget about the basic rules of trading:

  • Do not trade against the trend;
  • And always put Stop Loss Orders.

it will save your nerves and capital)… Good day for everyone, and successful trading!

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Cryptomaniac
By February 2, 2019 13:27