Hi everyone,
Bitcoin got dumped again yesterday and altcoins went down with it. Binance (unannounced maintenance schedule) and Coinbase had problems with their exchanges. BTC went down with altcoins following. Is this a coincidence or is there more behind the scenes ? It is obviously hard to proof that these exchanges are behind it, but It is easier to dump the price when big exchanges like Binance and Coinbase are not providing the liquidity. We still have a small market so if big liquidity falls away, it will be even easier to dump or pump a price.
I will show you here a daily chart of Bitcoin and it will tell a lot about what is going on :
This is the daily chart of BTC on Coinbase. I have drawn three green arrows which explain a lot. The one on top is a downfall in price between two points in time. The middle green arrow is for the indicator called “Accumulation/Distribution”. This is moving upwards. The indicator tells us if accumulation is going on or distribution at these prices. If the line (orange line) moves up and price is moving down, it means accumulation is going on ! If price was to rise upwards and the indicator line moves downwards, then distribution is going on. In this case it is actually accumulation !
The bottom indicator is the OBV (On Balance Volume) which shows what smart money is doing and for now this one is pointing just a little bit upwards between the two time points. This means again that smart money is picking up Bitcoin at these prices rather then to dump it. This indicator/blue line can move below the arrow I put and it would not mean the end of the world. It would most likely mean that we can head further down a little bit towards the 9200 area.
I am currently looking at the 9600$ area, like I did during the dumps of Saturday and Sunday. This one is holding on a thin line at the moment and if it breaks we will probably see a move down to the 9200 area ! I expect price to bounce from there towards the 9600$ range and we will see If we can go above it or if we get rejected. If we get rejected, we even might move as far down as 8500/8600 $ area (CME gap filling), but I do not expect for now that we will get below 8500$. I am equally looking at the 8900 area because the golden cross (50 MA above the 200MA) took place around this level. This is a reasonable price level to see a bounce ! What might be very interesting is that we go below the golden cross towards the 8500/8600 area and create a fake down and move back up above the golden cross one or two days after. This would scare a lot of people and the overall sentiment will maybe move towards neutral/bearish, because lately we have been very bullish again and there are more longs than shorts in the market.
All of this for me means, do not get scared because of the dumps of Saturday, Sunday and yesterday. Try to buy the dips whenever you can and do it in small portions. The indicators are not showing bearish signs, long term indicators like the Gaussian channel, hash ribbons, Mayer multiple, golden cross moving average etc. are all bullish ! Altcoins move often with BTC, so you can grap your chance as well to buy the dips for your favorite altcoins.
Don’t let them take your Bitcoin ! Don’t let them shake you out !
This is not financial advice and I am not a financial advisor. Do your own research and make your own decisions.
Source :
https://www.investopedia.com/terms/a/accumulationdistribution.asp
