CRInvestor

Wkly BTCE - normal consolidation after big surge

Formación
BTCE:BTCUSD   None
Today's tutorial session was all about long term viability. While it is one thing to have a sound fundamental idea, it is quite another to have a good trade setup. Ideally, as rational investors, we only want to buy when both fundamental and technical indicators are pointing in the same direction. Unfortunately, while the fundamental story for BitCoin still seems to be sound, technically the story is not. Supply has overwhelmed demand of late (With news of China's forced liquidation and ban of BitCoins that adds further supply over the short term) and as a result price has made lower highs and lower lows.From a cyclical perspective, if the bull/bear cycles repeat then one ought to expect to see about six months of consolidation before any new move can begin in earnest. Based on volume alone I believe that signal will be quite clear. Should we get a weekly bullish session where volume surpasses the recent down bar peaks then we will know buyers have once again taken over.

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