By 4C Trading — 14/10/2019 :
This analysis is intended for swing traders or medium-term investors. As a reminder, swing trading is a strategy of speculation in financial markets where an asset is held only for a few days to take advantage of price fluctuations. In this analysis, which you will find every week, I will detail my vision of the market and more specifically the one of Bitcoin. In addition to a technical analysis, I will summarize 3/4 of the news that impacted the market.
Bart in formation?
Within a week, Bitcoin has partially respected our action plan.
Indeed, after ranging for a few days, the price went up, breaking the resistance of its range at around 8525$. It then continued to rise but very quickly lost its cruising speed before finally returning in its range.
If you had placed a buy order at the break of the resistance of the range, and you were expecting a rise to around $9600 as indicated in scenario 1 of the previous analysis, you could at best secure a small take profit before closing the trade without loss. This of course only if you have applied our risk management advice that you will find in this article.
After re-entering its range, the Bitcoin came up against its famous support of 8300$ that we had indicated to you for more than a week. The Bitcoin course is still working on this support with a 100$ accuracy. On a daily timeframe, we will notice that the candlestick of October 13th represents a classic case of a bullish SFP (Swing Failure Pattern).
For those of you who are not familiar with the SFP, I invite you to read this excellent Medium post on the subject.
Take the time to read, understand and assimilate this notion because it is very useful and powerful. Feel free to practice on a naked graph to identify this type of configuration.
What can we expect from the market?
- Scenario 1: The 8300$ support does not hold, it becomes resistance and we go back to test the lowest zone of the range with as next support: 8060$.
- Scenario 2: We are indeed in the presence of a bullish FPS with a daily bullish MACD and RSI which would therefore correspond to a possible increase to $9,200 as indicated in last week’s scenario 1. This type of scenario would correspond to a Bart, the reason? Look at this image: (very fast descent then tidy up before going back up just as quickly to the image of Bart Simpson’s hair)
For those who want to follow our trades, remember to follow us on Twitter. This morning, we launched a free signal for Bitcoin!
Don’t forget your stop-loss, good money management is the basis of all trading.
- Unicef & Crypto
UNICEF will not convert Bitcoin and Ethereum donations to fiat. UNICEF is one of the first international agency to launch an official pilot program to accept cryptocurrencies — as donations. The first donation should me made by the Ethereum Foundation : 1 Bitcoin and 10 000 Ethereum. The program is realized in collaboration with UNICEF USA, New Zealand, France, Australia. As announced, UNICEF won’t convert the raised funds to cash.
- Telegram stopped by SEC
The United States Securities Exchange Commission is investigating on Telegram ICO which raised more than $1.7 billion. The SEC is accusing Telegram to have conducted an unregistered securities offering. Steven Peikin — co-director of the SEC’s division opinion : “We have repeatedly stated that issuers cannot avoid the federal securities laws just by labeling their product a cryptocurrency or a digital token. Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public.”
- InfiniGold launched gold-backed regulated token
Perth Mint, a wholly government-owned enterprise has approved InifniGold to launch Perth Mint Gold Token (PMGT). PMGT is a ERC-20 token and can be exchanged for physical gold stored at The Perth Mint. At the moment, users can only trade PMGT on GoldPass, a mobile application.
- SEC rejected Bitwise Bitcoin ETF
On January, 28th, NYSE proposed to list Bitwise Bitcoin ETF. However, SEC has recently turned down the proposal stating: “NYSE Arcahas not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and, in particular, the requirement that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices.”
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