17
Dec
19

Building positions, arriving at target loaded – Bitcoin Technical Analysis

December markets are tricky. With the closing of the year come rollovers in futures markets, tax considerations, hedge fund portfolio allocations due to accountability and much more. Markets are a reflection of human behavior and the holidays are challenging to many. From family reunions to financial responsibilities. A whole lot of psychology influencing factors are bundled into a small increment of time. Consequently idiosyncrasies get mirrored onto the market and its behavior. It is not unusual that this time of uncertainty results into strong moves right after New Years. As contrarians, we rather partake anticipatory in the market versus reactionary late actions. One such way of participating in this specific time of the year is building positions, arriving at target loaded.

 

Bitcoin has one historical trading attribute, to be able to take off very quickly. This requires extra attention. Larger time frame turning points don’t want to be missed.

 

Monthly chart, BTC/USDT, December 8th 2019, “caught the recent lows just right”:

 
This image shows the technical analysis of bitcoin in a daily candle stick chart with upwards pressure

Bitcoin in TetherUS, daily chart as of December 8th 2019

 

We were able to catch recent lows on November 25th 2019 with a larger position size. We took partial profits and still carry a remainder part of the position. After that we reloaded this core position with smaller size reentries. All trade entries and exits are posted live in the telegram channel of Midas Touch Consulting.

 

Building positions-arriving at target loaded, BTC/USDT, daily chart, December 9th 2019, “triangle building”:

 
This image depicts the daily bitcoin / Tether USD chart with candle sticks forming a wedge around 7500TUSD.

Bitcoin in TetherUS, daily chart as of December 9th 2019

 

The market formed a triangle on the daily time frame. This usually causes a strong break in either direction.

 

BTC/USDT, daily chart, 12/12/2019, “attractive reentry points”:

 
This image depicts a daily candle stick chart of BTC versus Tether USD. The wedge has been broken from 7400 TUSD down to 7200 TUSD

Bitcoin in TetherUS, daily chart as of December 12th 2019

 

The fact that we broke only modestly through support points towards a likelihood of again low risk position building entry points.

 

Building positions, arriving at target loaded.

 

To sum up, can we break lower than the recent US$6,515.00 lows? Absolutely. The importance here is not to loose focus in a slightly dreary environment. In other words, there is a tendency to get easily distracted by the turmoil of the holiday preparations. Weak psychology is what the market flushes out. Once bitcoin gets in motion it is harder to catch up than diligently building a position here. We do not want to push for over trading or any other high risk participation. We would like to remind you however, that extraordinary circumstances require the extra preparedness of the astute market participant.

 

All charts timely posted in the telegram channel of Midas Touch Consulting.

 

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Korbinian Koller
Technical Analyst