Opinions
Crypto Talk with Terence
Bitcoin (BTCUSD)
CRYPTO:BTC
RISKY
Feb 03, 2022
Stock price when the opinion was issued
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CRYPTO UPDATE
The triangle we spotted on Bitcoin was very effective and broke its resistance with a nice candlestick that made it take almost 6% in one day.
The take profit target is still located at $56,000, close to an important supply area (many sell orders pending in the order book). The price is currently operating a pull back on the resistance zone it broke recently, this is perfectly normal and occurs in about 60% of cases (Chartist analysis, by Francois Barron), this could also be a very good entry for investors who missed the low of the triangle and its breakout (we can also wait for the breakout of the last high.
Investors who took position at the low or middle of the triangle currently have a nice profit (+20-10% at the time of writing, +30-20% at the high), and can expect much more, if the pattern materializes until the end. The most sensitive (and they are right) to money management have already moved their stop loss beyond their entry point, and can no longer, regardless of future developments, lose money.
It is interesting to note the high correlation between Bitcoin and other cryptos. Indeed, since the break of the triangle on Bitcoin, the main other cryptos have all experienced interesting gains this week, including Ethereum (which also broke a triangle from above), and Solana (+60% for a week). The case of Solana is very interesting because we had two chartist figures, a triangle and a triple bottom that led to this rise of 60% in 1 week and 80% since March 11.
Although probabilistic, chartist analysis remains an extremely powerful tool to evolve with more confidence in the chaotic financial markets, no matter what the detractors say, provided of course to retain this elementary but crucial rule that is missing to 90% of investors, and allowing to extend its life (in the financial markets) on the long term: to have a perfect control of its money management.
CRYPTO UPDATE
The battle between buyers and sellers is raging within the market, and currently, the sellers seem to have largely won. Indeed, against all odds, the market made a bullish jump today. Ether took +10%, SOL +9%, AVAX +11$ and BTC +9%.
BTC even had the luxury of breaking through its $40,000 resistance with a strong bullish candle, and could even close the day near $41,000. At the fundamental level, it is possible that the turnaround in Russia has reinforced asset buying.
Indeed, after the thunderous announcement by the Russian central bank to ban cryptocurrencies, many internal voices have risen up against this sanction by underlining the folly of such an action (some even see it as a new market manipulation in view of buying back the assets at lower cost). We can also underline the fact that El Salvador asserts its sovereignty and totally rejects the injunctions of the IMF warning it against its pro-Bitcoin policy.