Wednesday, 29 November 2017

My Latest Bitcoin Trade and Next Downside Targets

I keep saying not to trade Bitcoin because i'm only here to study it, not making money. But then, the trader in me couldn't help it. Naughty!

Also when i started in 2014, the amount was play money. Now, it's getting to be serious money. I need to keep a closer eye.

I don't look at BTC chart every day. But when i look at it and it looks like there's a trade opportunity, i'll pull the trigger. Today is one of such day.

Bitcoin Price Chart from June to November 2017 with trend line and Pullback targets
5 month chart of Bitcoin price
(Click image to enlarge)

When i check the price today, it looks like one of those blow-up top day. And the technical is quite stretched (not to mention a bearish divergence in the Money Flow indicator). Of course, it may go up a few days from here (if at all). But the downside is more likely. So i decide to sell it.

When you get about 100% gain in about a month, why not locking in the gains? As they say, you can't grow poor by taking a profit.

Poloniex Trade History screen
Trade History in my Poloniex account (Bought @ $5530, sold @ $11250)

I expect the price to pull back from here (or the next few days at the most) towards the trend line in the chart above. But if it fails (quite likely), the next logical target would be about $8000 - $8200. And the 3rd logical price target would be ~$7500. I doubt it would pull back much lower than that.

I keep my eye for entry into one of these 3 targets.

But if it falls below $5500, an extended correction will take place. In that case, i would just sit and wait until the dust settles before considering a re-entry.

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