BTCUSD
has been in a downward channel since it's all time high of $20,000. Credit for the idea goes to
Using a pitchfork, on the high and low, we're able to get an idea of when this correction might be over.
Buy in price $8400. (Meeting of the long term trend line on the logarithmic scale and the intersection of the peak from the previous impulse. (Very common correction point for Bitcoin after big moves.)
Market may continue to move sideways. Futures on 1/26/2018 is very important and we may see a bit of panic selling before then as well, which may continue into early February.
In this game, patience always pays off. We may get to $14k, which if we do, we'll probably move out of some positions and wait to see where the market will move from there.
As expected, the major coins are doing better than the other altcoins. There are some good setups on a few coins, but overall, the market is still not out of the woods as we moved back under $11k yet again. Altcoins are continuing to bleed every time bitcoin goes up or down, so in my opinion, it's just not worth it to trade right now. The gains just aren't enough to warrant the risk.
Many countries and people are pulling money out of the market, scared that their banks/exchanges will shut down their ability to withdrawal their funds. So what we're seeing is no FRESH money coming in and the money that is IN the market is bouncing around from coin to coin to coin chasing news, rumor and speculation.
Here are some rules to trading during this type of market:
1. Don't buy into rally's.
2. Stay unemotional.
3. If trading during a bear market cycle is stressing you out, just get out of the market and wait to see what it does.
4. Do your own research. It's okay to use signals but double check them as well.
5. Buy the rumors and sell the news!
6. Never buy at all time high's. (I'm looking at you guys and VEN.)
7. If you're at a loss, just hold until it comes to break even or a new market cycle.)
8. Sometimes the market plays against you, skip that day.
9. Always use your stop loss and adjust it once you're in profit zone to lock in more profits and prevent the turn around.
10. Don't go all in on one coin. Use small allocations on altcoins during a falling market.
11. If you're looking to pick up some long term positions, this may be a good time get some, or you can wait to see if the market moves lower as we've advised as well.
12. For long term positions, setting very low buy orders at previous support is a strong move to catch wicks on panic sellers.
I will update soon as the market moves.
Happy Trading.
