You may be wondering how to trade BitCoin analysis and similar cryptocurrencies. There are countless cryptocurrency strategies you can use to trade BitCoin for profit. However, you must be aware of a very important characteristic of the cryptocurrency market, it follows supply and demand as any other financial market, and cryptocurrencies and crypto trading are no exceptions.
Pools of supply and demand imbalances are created in all BitCoin timeframes. You must know what these imbalances look like and what they mean before you decide to take a trade on BitCoin. The BitCoin technical analysis video below is doing a long-term analysis of the monthly timeframe, intraday and shorter-term positions are not explained. Those are different monsters.
As mentioned in a BitCoin forecast September 2019 post, supply and demand trading analysis told us a bigger correction to $4,000 was expected on BitCoin cryptocurrency. I got some emails from people telling me a supply and demand strategy cannot be used to trade Crypto Currencies. Well, the market speaks for itself. Nobody believed the price would drop from $20,000, and we warned everyone.
As per the monthly chart, BitCoin cryptocurrency created a very strong demand imbalance level of around $4,722 last October 2018. It took a year for the price to retrace to that imbalance, but when it did, the price reacted very strongly. Our BitCoin prediction was correct with laser beam accuracy when we spoke about that monthly demand level a few months ago. Those following us in the supply and demand trading community could take advantage of this long-term analysis and position on BitCoin cryptocurrency.
BitCoin has been rallying from that monthly demand level since last January 2019, recreating a very similar price action to October 2018, where the demand level on the monthly timeframe originated. Supply and demand strategy principles are clear and to the point about impulses. After a very strong impulse (bullish or bearish) we should not be thinking of trading in the same direction. In BitCoin monthly chart, we can see a very strong bullish impulse and strong signs of rejection for the last two months, July and August 2019.
In the previous impulse, when BitCoin’s price was trading at around $20,000 all the media and news were talking about BitCoin; buy BitCoin, it’s the currency of the future. Wait for a second! All the media was telling you to buy BitCoin at $20,000 after such a strong rally? Come on! You should be considering selling BitCoin crypto for profit, no more buying; we expected the price to drop as heavily as it did. Bitcoin is in a similar scenario right now; we should be considering buying BitCoin long-term because we expect a much bigger correction.
Our supply and demand forecast and prediction for BitCoin cryptocurrency is explained in this analysis and the technical video analysis below. If you are a short-term trader or scalping BitCoin for profit then it’s a different story and analysis. For long-term positions, now it’s not the type to buy BitCoin cryptocurrency.
Join our trading course if you want to learn how to trade BitCoin and other Crypto Currencies using our proprietary supply and demand strategy. You will be welcome to join our trading community.
© 2013 – 2022
Set and Forget S.L
All Rights Reserved.
Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.