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(Photo by Dan Kitwood)
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Bitcoin (BTC) traded at 30,000.00 on May 19, then at 40,866.38 on May 26. This range has been consolidated since then.
Bitcoin is interesting because it trades 24/7. The exchanges are postponed to the next day at 00:00 (midnight).
From its high of 64,899.97 set in the week of April 18 to its low of 30,000.00 set in the week of May 23, it was down 53.7%.
Bitcoin’s weekly chart is negative, which favors a sell-on-strength strategy.
Here is the daily chart for Bitcoin:
The daily chart for Bitcoin
Courtesy of Refinitiv Xenith
Bitcoin is up 319.6% from its low of 8,825.00 set on June 27, 2020. From its all-time intraday high of 64,899.97 set on April 14, 2021, it is down 42.9 %.
Bitcoin trades 24/7 and trades around its semi-annual pivot at 35,643 on Sunday, June 6. Its trade is below its 50-day, 200-day simple moving averages at 47,237 and 41,690.
The horizontal lines from the bottom to the top are its annual value level at 18,893, its half-yearly pivot at 35,643, its quarterly pivot at 40,283, and its monthly risk level at 61,916.
Also see the May 19 low at 30,000 as major support. In summary, BTC rose from $ 8.63 on May 25, 2020 to its historic intraday high of $ 64,899.97 set on April 14, 2021. Since that high, BTC fell to $ 30,000 on May 19.
This extreme volatility is consolidating. The trading range on May 19 was between $ 30,000.00 and $ 43,606.75. This range has been on sale since May 19.
My semi-annual pivot at $ 35,643 was a magnet between Jan 6 and Feb 3. Holding the 50-day simple moving average at $ 29,252.24 on January 27 proved to be a buying opportunity.
The 50-day SMA again held at $ 51,278.28 on March 26 as another buy opportunity. When the 50 day SMA failed to hold at $ 56,252.44 on April 18, the daily chart suggested that strength should be used to record profit.
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The sell zone in which to record profits started with its 50-day SMA at $ 56,973.09 on April 30. As of June, my monthly risk level is $ 61,916. The May high of $ 59,598.22 was set for May 10.
With the bursting of the bubble, Bitcoin will be extremely volatile. Use moving averages and my value levels, pivots and risk levels to capture the choppy trading patterns for Bitcoin.
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