[Dragon Punch] Bitcoin surges back into the 90,000 yen range! Record highs keep coming.
Hello everyone, Shoryuken! We couldn’t ride the rising dragon as it ascended@xi10jun1... that’s the story.
Bitcoin was in a consolidation phase last week, but this week it jumped substantially and we again entered the 90,000 yen range!
It feels like the 100,000 yen level might be breached next.
This week’s performance (December 9, 2016 to December 15, 2016)
First, as always, the performance summary.
In the early part of the week there were days I could profit from buying, but the losses mainly came from selling.
This was especially evident in the trades on December 15.
I timed some tentative short positions, but was pushed by strong buying and suffered multiple stop-outs...
I’ll trade more carefully.
Bitcoin market on December 10, 2016 (chart time: 1h)
Having broken out of the range, a rising trend emerged.
Bitcoin often runs once it breaks out of a range, but this time it rose slowly and steadily.
Also, while watching the market, I noticed that the line connecting two pullbacks tends to serve as a guide for the third and fourth pullbacks. This may be common in forex trading, but it seems to apply to Bitcoin as well.
Bitcoin market on December 11, 2016 (chart time: 1h)
As the gradual rise continued, I became complacent, and a sharp drop occurred!
However, the downside was limited. As I’ve noted in previous columns, when a pullback occurs within an uptrend, unless the decline is as strong as the previous rise, there’s a good chance of a rebound.
This drop at that time was weak, so it was a buying opportunity.
Bitcoin market on December 12, 2016 (chart time: 1h)
The next day, as shown, it cleanly rebounded.
The bottom at this point could be viewed as around 88,500 yen near the rebound. Of course, if it breaks below, it’s a selling signal.
And the next high is 89,500 yen. If it exceeds this, it could be considered a buy.
Bitcoin market on December 13, 2016 (chart time: 1h)
And it easily surpassed 89,500 yen, but then it dropped below 89,500 again.
Since the decline is steep, I thought a downtrend might be forming. But I wouldn’t be confident unless it stayed above 88,500 yen, the rebound area from the 12th.
On this day I was able to make a small profit with the technique I described in previous columns — “short-term counter-trend after crossing the Bollinger Bands.”
Bitcoin market on December 14, 2016 (chart time: 1h)
The next day there was a rebound, but there wasn’t the same aggressive buying as before; it moved more in a wait-and-see pattern.
While rebounds were happening, I’d like to focus on an uptrend, but a drop is possible, so it’s better not to trade too actively here.
Whether it will break above the recent high of 90,539 yen or fall to around 88,500 yen near the 12th rebound is the question.
Bitcoin market on December 15, 2016 (chart time: 1h)
And then the fate of the 15th arrived.
Shoryuken occurred!
It easily surpassed the recent high of 90,539 yen and rose to 91,500 yen!
If you look closely, even the 14th could have been bought on dips. I can’t watch every move, but it’s frustrating that I didn’t catch this.
It then rose to 92,400 yen, but I failed by making a half-hearted short at that point.
Free summary: Will it head straight to 100,000 yen?
In my previous free summary, I wrote, “If it heads for 90,000 yen again, there’s a strong buying signal,” and that turned out to be exactly right.
This strong buying may continue for the rest of this year. I’d like to position myself with an eye toward the 100,000 yen level.
However, I also want to watch closely for any selling pressure to exit positions. Do such price movements exist in Bitcoin markets? I’ll keep an eye on that and continue trading.
Closing corner: shopping with Bitcoin!
In fact, the overseas e-commerce site “FANCY” lets you buy products with Bitcoin! It may incur some shipping costs, but there are stylish items you won’t see in Japan!
For how to use FANCY, please refer to this blog post.
- →Guide to creating a FANCY account, registration, settings, and how to purchase goods | Investor Jun
- →How to purchase (pay with Bitcoin) items from FANCY | Investor Jun
Note: The free content ends here. The rest is detailed analysis and future outlook, which is paid. If you’re interested, please consider subscribing!
