[Adjustment] Researching the strategy to take in a Bitcoin ranging market!

Hello everyone, range trading! Daily analysis of the Bitcoin market@xi10jun1is here.

Bitcoin rose above 90,000 yen last week, but this week we are seeing a bit of a pullback.

I feel we might surge again, but let’s not let our guard down and continue taking positions!

This week’s performance (2016-12-03 to 2016-12-09)

First, as usual, the performance.

There was a sizable sell-off on December 3, so I made a little profit from selling there.

Sometimes orders come in granularly at execution, so I’d like to fix that little too.

As mentioned before, scalp trading is difficult in the Bitcoin market, so be sure to place stop-loss orders and trade on swings.

Bitcoin market on 2016-12-03 (chart time: 1h)

It exceeded 90,000 yen, but a price drop occurred, unfortunately.

From the ascent trend since November 30, we should take a wait-and-see approach here.

Bitcoin market on 2016-12-03 (chart time: 4h)

Let’s take a look at the 4-hour chart here.

Price movement in the past few months has been: gradual rise → sharp rise → pullback (significant drop) → gradual rise → sharp rise.

If this sell-off moves like previous ones, a rough target would be around 85,000 yen.

Bitcoin market on 2016-12-04 (chart time: 1h)

There still seems to be buying strength, so it doesn’t simply crash downward.

It might become another range-bound market like last week, but there are signs of upward momentum.

Bitcoin market on 2016-12-05 (chart time: 1h)

Ah, I’ve seen this pattern before. There are occasional stronger sells, but buying seems to gain the upper hand quickly.

However, buying isn’t overwhelmingly strong; it’s slightly more favorable to buyers than sellers.

There’s also a vibe that it could move up further.

Bitcoin market on 2016-12-06 (chart time: 1h)

But another price drop occurred. I don’t know the cause of this sell-off, but a downward trend is beginning to form.

Buying after this drop is a bit weak, so further declines should be watched for.

Bitcoin market on 2016-12-07 (chart time: 1h)

I expected more downside, but it has returned to a range-bound market.

From the low of 87,170 yen on the 5th to the high of 88,700 yen on the 6th, the range is here. Direction beyond this range will help determine the trend.

I tried a small short at the second price drop, but buying activity is adequate, so losses can occur as well...

Bitcoin market on 2016-12-08 (chart time: 1h)

The range-bound market continues.

As for the lower end of the range, it’s around 87,170 yen to 87,700 yen. If the range persists, buying around this area could yield profits.

Of course, set your stop-loss at 87,170 yen.

Free summary: If we target 90,000 yen again, strong buying may occur

From past Bitcoin market behavior, after such range-bound periods, a sharp rise often follows.

However, around the time of the second pullback, things look somewhat different. Exercise caution!

Also, thank you for the review on this column; you asked for more future-predictive analysis beyond past analyses. We appreciate your valuable feedback!

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Closing corner: Shopping with Bitcoin!

Actually, the overseas e-commerce site “FANCY” allows you to buy products with Bitcoin! It may incur some shipping, but it features stylish items you won’t find in Japan.

Instructions for using FANCY are summarized on this blog, so please refer to this.

→How to create an account, register, and set up and buy on FANCY | Investor Jun of the Easygoing Generation
→How to purchase with Bitcoin (Bitcoin) on FANCY | Investor Jun of the Easygoing Generation

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