In my last chart on Bitcoin I mentioned the self evidence of the present situation with reference to short-term trades. At the moment I think we are still in no man's land in terms of short-term trades using cash.
I never trade on margin. For margin traders, there may be an opportunity for shorts approaching.
In this chart I have included a number of moving averages which really illustrate the current situation. Each moving average has its own color and the label is next to its in the same color. And you will also see the current price for that moving average in the right-hand price column.
I didn't go back so far in this chart is to illustrate what I'm about to mention all the way back to the first of the year, but trust me the pattern holds true. Take note of the blue nine day moving average in relation to the dark red 365 day moving average. In every case where these averages cross it has meant a major move in the direction of the nine day moving average relative to the 365 day moving average.
So what this indicates to me at the present moment, is that Bitcoin is in a very weak position and the trend is definitely running against us in the short term. Given the velocity of the nine day moving average falling toward the 365 MA, it seems apparent that we are about to cross into a zone of further price decline for Bitcoin.
Not making any bold predictions here, there's a lot going on in the markets right now behind the scenes. I believe that the Winklevoss twins amongst others are about to be successful in establishing an EFT for trading in Bitcoin. Should that happen, there will be an explosion to the upside in Bitcoin prices.
My current stance is this, I've been holding a position in Bitcoin for some time which I bought at prices better than the current price. Even if I were holding Bitcoin at a loss on paper I would continue to hold. I believe that investing better rather than trading is the current play with regard to Bitcoin. I believe there is a current opportunity and perhaps an even better chance to pick up more Bitcoin at good prices and hold it for the eventual entry of EFT trading into the Bitcoin markets.
As I've said before I don't trade on margin I consider it too dangerous. If I were a gambling man (margin trader) I would be considering shorts against Bitcoin right now.
shorts on crypto is suicide for deposit
So right, crypto moves too fast.
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