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Bitcoin Moving Average BTC Strong Longterm Hold

Bitcoin Moving Average BTC Strong Longterm Hold
Bitcoin Moving Average BTC Strong Longterm Hold

Bitcoin Moving Average BTC Strong Longterm Hold threetwoone whats up everyone dan here crypto capital venture June 21st 2018 I hope youre doing well I hope youre having an awesome week its been busy for me I havent done a article in a couple days not because the markets going crazy means a little down Im not scared running but Im planning a wedding Im getting married in a couple of weeks and its actually a small wedding but still incredibly busy doing that and running a business at the same time it gets tough to do a article every day but Im here and I want to do a article and I want to talk about Bitcoin I want to look at Bitcoin charts mainly from a longterm perspective and I want to talk about the mental aspect of it I want to talk about moving averages and I want to talk about really where the the market is in general so lets jump in and talk about these things so first off I want to point out since Im going to be talking about moving averages youyou can see on the daily chart a 50 EMA and you see if 200 EMA which is the orange line now exponential moving average different than a simple moving average in that its just a little bit more aggressive the lines react a little bit more aggressively and quickly than a simple moving average I prefer the EMA when charting so what is a moving average in general just in case you dont know really so the blue line the 50 is basically the closing price of the of the previous 50 closes and added up and divided by 50 to kind of give you an average of that time frame so it really gives a clearer picture of the direction of the markets it also actually in synergy with you know different indicators like the RSI stock RSI it really helps you see how oversold overbought we are and it really helps prepare you for maybe a move in the market so I prefer 50 and 200 and most often and you see that in my articles a lot just because Im long on crypto in general so Im not so much trading so if youre a trader and youre looking you know for a shorter timeframe like what should I do right now in a trade should I get out this article might not be for you but you could apply the same principles to shorter timeframes and so lets talk about what I want to talk about in this article which is the long term trend long term moving averages of Bitcoin and where we are right now trading at around sixty seven hundred dollars so I want to start on the weekly on the weekly I have a 100 EMA and I have a 50 ma the 50 is the blue the 100 is the is the orange that you see now I want to point out a couple of things first off you can see at the end of this bear market that we had this last bear market that we had at the end you can see this this pink line I drew is basically a general trend line since we started moving up since Bitcoin started moving up its not a perfect trendline but its its a pretty clear picture of the big of the trend of Bitcoin second what I want to point out is lets go back to the bear market and lets lets concentrate right now on the 50 EMA thats this blue line the bear market so it started we had parabolic moves in 2013 you see it Bitcoin went crazy and then we hit a top and we entered that bear market now you can see when Bitcoin went crazy obviously above the 50 EMA right so what it did is it pulled back down to the 50 EMA and then it bounced a little bit back above and then back down I know this seems obvious but I want to getting to a point here now when we really entered the bear market you can see opposites that instead of support above the 50 EMA what bitcoin was doing in this bear market was it was seeing a downward move and its seen resistance at the 50 EMA so it would it would go down it would pull back up to the 50 EMA go down pull back up down back up so thats first off what I want to talk to you about in this article which is these the moving average lines really help in kind of not predicting whats going to happen but anticipating whats going to happen next because what what crypto is what stocks do is they have snap backs to EMAs ki ki not EMAs moving averages so what that looks like Im gonna do this to paint a picture Im gonna first get my price range on the daily so lets get the price range on the daily and lets look at lets look at the the beginning of this bear market that we had starting in 2013 so we had a snap back right down to the 50 EMA right and then if Bitcoin pulled away and then it snapped back 25 back to the 50 ma okay and then what happened is Bitcoin traded below the 50 EMA right here and we can see how much 30 and even wick down like to 50 and then it wick or not wick but it traded all the way back up to the 50 ma snap back up to the 50 EMA now if you just generally glance at the chart you can see how many times Bitcoin does that so in the bear market on the 50 EMA what you see is resistance so down snap back to 50 down snap back above 50 and then a snap back to 50 above and then finally in this bear market its kind of below its below the 50 line for a while but you see these consistent snap backs up to the 50 and there are generally 25 to 50 percent snap backs to the moving average so same thing when we when we exited the bear market right and we started trending back up heres that pink trendline I have on the weekly right there when we started trending back up same thing happening moves away from the 50 snap back away snap back and you can see it time and time again now what happened in this parabolic move that we had pretty much especially leading to the end of 2017 you can see it continue happening these snap backs to the to the 50 moving average and now what has happened that last parabolic move we had a huge snap back a leveling off of the 50 right so no more parabolic move and now weve weve entered below the 50 EMA which is very reminiscent of the bear market when we entered below the 58 EMA there so also happening at the same time is we obviously had that 50 EMA cross below the 200 EMA which is indicative also of a bearish market so all this to say right now with where we are in the market one thing that you can look for is those are those snap backs so and they continue to happen you can see this this second bottom that we had in Bitcoin we had a snap back to that 50 so right now were kind of I think were probably around 20 20 percent or so under the 50 ma so we might have a little bit of a ways to go down we might test maybe 6000 before another snap back up to the 50 EMA but those snap backs and Im tired of saying that word snap back but I dont know any other word to use right now our our very key to look out for now in terms of the the longer market what I want to point out lastly in this article is there is the pink trendline that I have and lets actually go to the weekly will probably be better for this so heres our high that we had around 20, 000 in Bitcoin right there on my brush output right here theres a 20 high and we had this huge pullback to the 50 on the weekly and now were starting to weve really kind of tested that as support but were really starting to fall below the 50 on the 50 EMA on the weekly so we might start trading below the 50 EMA on the weekly just like we did in this bear market and in that type of scenario it might look like something like this theres the 50 ma that Im drawing and we might just start trading and snapping back up to it trading down you know to back down to around this trendline area it could be three five thousand dollars that is that is a bearish scenario but its very real but I want you to keep in mind with longterm trend that we do have in play and this all to say that if you are long things do not things do not look that bleep things are not that bad you cant have a constant parabolic move in Bitcoin if this is what it does this is what its what it has done over the years it pulls back to these key moving average areas it consolidates greatly after these after these huge moves just like we did before consolidates next move up consolidate so the question is did it consolidate to here and are we are we good to go for the next run up or are we going longer and its very possible that we consolidate further down kind of in that 30005000 area until we have another move back up so we could be at another parabolic move in 2019 2020 to whoknowswhere and then a pull back down so its a slow growth so I know Im talking a lot about moving averages and Im talking about pull backs and all this stuff but its probably the most important thing in this crypto space right now if youre watching this article step outside of the day today and look longterm its the same thing with business like if you get so wrapped up in in the day to day and you forget your long term goal youre gonna get distracted youre going to get emotional youre going to get stressed out so my biggest recommendation is just to really do what is on the screen right now this very messy screen which is a zoomed out version of of Bitcoin we have like a market cap under 300 billion crypto as a whole it is so small it is so new and yet were still were still trading at around sixty seven hundred dollar Bitcoin the longterm opportunity here is unbelievable if we enter a bearish market and we do trade down this trend line you know four thousand dollars and we level off there theres a huge opportunity for accumulation right now so please I just want to encourage you get your mindset right with the markets right now if youre kind of if you feel like you are living in that day to day and youre stressed out and youre youre watching your your maybe your investments that maybe you bought Bitcoin at ten fifteen thousand dollars and youre watching that and youve lost 50 percent in your stressed first of all do what you need to do in terms of your investments I always try and gear everybody to be more conservative but do what you need to do but then once youre comfortable with your position step out and just kind of evaluate the situation and kind of be cool with the situation because right now things are things are looking fine in my opinion but I have a longterm outlook and that this is why this is why i zoom out on the charts I look at moving averages I kind of see where we are in those moving averages and it really helps if you want to really even zoom in on the daily it really does help to buy the dips in these areas even in a continued downtrend so if you are traitor right now isnt a horrible time to to play a dip it might go down a little bit more but I think we might have a pullback soon before a possible continued move down so nobody knows at the end of the day these are just some of my thoughts I wanted to share with you I probably could have made this article fifty percent shorter but it happens I didnt plan this I hope you all are doing well if youre not a subscriber please subscribe Id love to have you as part of the channel as always I will see in the next article and god bless

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