Skyrocketing! Bitcoin rose to over 90,000 yen at one point, why doesn’t it stop?
Hello everyone, explosive rise! I’m not riding this explosive rally yet@xi10jun1...this is
As I edit this column, bitcoin has already surpassed 90,000 yen, continuing the explosive rise from last week.
How far will this vigorous buying spree go?
This week’s performance (November 26, 2016 to December 2, 2016)
First, as always, the performance.
I’ll write more later, but this week was a bit range-bound, so in the early part I didn’t trade much while holding a selling position.
That said, it eventually exploded, so it turned into a stop-loss...
I did some scalping too, but I think it’s not very compatible with the Bitcoin market. Price moves widen rapidly, so just when you try to close a position, it often moves in the opposite direction.
Bitcoin market on November 26, 2016 (chart time: 1h)
The lower bound was being solidified, inching upward slowly.
In such price movement, if it breaks upward, it rises further; if it breaks the lower bound it starts to fall.
At first glance, it seems likely to break above the high.
Bitcoin market on November 27, 2016 (chart time: 1h)
Just as I expected, it broke the upper bound and started a downtrend after breaking the lower bound that had been holding.
There were rebounds, so it wasn’t a major crash, but it became clear that 85,000 yen is now a resistance level.
The retracement is still quite strong...
Bitcoin market on November 28, 2016 (chart time: 1h)
And it entered a range-bound phase.
The range is 83,000 yen to 85,000 yen, but whichever side it breaks could trigger a large trend.
When in a range, I normally don’t take positions, but this time I tried selling.
Bitcoin market on November 29, 2016 (chart time: 1h)
November 29 also remains range-bound, with small price moves and stagnation near the lows.
It would be ideal if 83,000 yen were broken, but direction is unclear, so chasing sells isn’t possible.
Overall it looks slightly downward, so it could drop sharply here.
Bitcoin market on November 30, 2016 (chart time: 1h)
And around the evening of the 30th, the range finally broke!
It surpassed 85,000 yen, so the selling position was stopped out... Well, it was only a 0.1 BTC position, so the impact was minimal.
After breaking the range, what will Bitcoin do next?
Bitcoin market on December 1, 2016 (chart time: 1h)
Temporary corrective selling appeared, but it continued to rise vigorously afterward!
When you break out of a range, it often gains momentum like this.
However, once it approaches the Bollinger Bands, some corrective selling appears again. This is a difficult moment to enter, but it could be interesting to test a sell here. I’ll try it next time.
Summary: Bitcoin markets tend to surge after breaking from a range
Similar to the dollar/yen and major currencies, Bitcoin tends to run hard once it breaks a range.
Currently it has surpassed 90,000 yen, so further upside is possible, but I’d also be cautious of corrective selling.
If rapid price increases trigger a correction sell-off, watch how far it travels. There have been many instances, but be especially wary of sell-offs that drop by ten-thousand-yen multiples.
Closing corner: Let’s try shopping with Bitcoin!
Actually, on the overseas e-commerce site “FANCY,” you can purchase products using Bitcoin! It’s a bit costly for shipping, but there are stylish items not commonly seen in Japan.
I’ve summarized how to use FANCY on this blog, so please refer to that.
- →Explanation of how to create a FANCY account, register, configure settings, and purchase products | Investment by the easygoing generation, jun
- →How to buy (pay with) Bitcoin for FANCY items | Investment by the easygoing generation, jun
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