Early May Update: Technicals
There is a lot of noise on social media whenever bitcoin does what it did last week – violently moves up or down. Bitcoin is up 12% in the last 7 days and analysts are coming up with a wide range of theories on where bitcoin goes next.
Additionally, there is a lot of Twitter trading masturbation and ego stroking with complex charts and usage of indicators nobody ever heard of (nor used) but we see bitcoin charts as crystal clear and easy to interpret.
The weekly chart looks pretty to us: bitcoin bounced off of the bottom support at $3494 and gained a lot of momentum to head up to the resistance level at $6400.
Now, if we zoom in for the more granular view on shorter time frames, daily chart BTCUSD is also pretty easy to read. Bitcoin is in an ascending channel, moving dutifully from the upper to the bottom line and the other way round.
Now, let’s look at some crazy trading gymnastics done on Twitter, complicating a fairly simple setup.
Below is the long-term analysis that covers both fundamentals and price predictions by analysts, traders, fund managers and other crypto personalities.
Bitcoin opened 2018 with a high of $13,290 and closed the year at about $3,800. This represents a 72% loss overall. By comparison, the Dow opened the year at $24,824 and close at about $23,300. This represents a 6.2% loss overall for traditional investors.
However, 2019 is a different story as bitcoin opened it at $3,700 but climbed up by almost 60%…