29
Apr
20

Uncertainty – Who will win? - Bitcoin Technical Analysis

Wouldn’t we all like to know? Fact is that nobody knows. The best a market player can do is an educated guess. Stack your odds diligently and never bet the farm. Let’s take a look at some major market players. Microsoft, Apple, Amazon, Alphabet (Google) and Facebook lead the general US markets. There is no guarantee these brands will be there forever. Where is Pan Am, Woolworth, Compaq, Oldsmobile, Toys R Us, Blockbuster or Tower Records. These are the extinct extremes on the other side of the spectrum. Just to illustrate of how power can shift over time. The truth needs to be found somewhere in the middle. We need to find the value that will rise to the top. With financial payment systems in turmoil Bitcoin deserves a very close look. It might possibly be a major player in the future. Who will win?

 

BTC-USDT, Monthly Chart, Double Bottom – Go:

 

BTC-USDT, monthly chart as of April 27th, 2020
 

With a simple double bottom play on the monthly time frame, large horizon time frame players had the chance to almost double their money in less than two months. It is the higher time frame low risk plays that spell out opportunity.

 

BTC-USDT, Weekly Chart, Possible Winner Coming Up:

 

BTC-USDT, weekly chart as of April 27th, 2020
 

Weekly time frames show prices trading near resistance. With a bounce from an extension of over three standard deviation, prices have returned to the mean (red line). We also trade near the 0.618 Fibonacci retracement level; a natural resistance zone for further advances. That being said, it would come to no surprise prices retracing from here. This would spell out a new mid term entry point for Bitcoin traders.

 

BTC-USDT, Daily Chart, Entry Opportunities:

 

BTC-USDT, daily chart as of April 27th, 2020
 

The daily chart describes the trading nature of Bitcoin. This trading vehicle provides range and volatility. In an ideal scenario the object swings harmoniously, which it does frequently. For the shorter term trader this allows trade frequency and for the longer term trader it equals entry opportunity. Within the last seven weeks a market participant was offered seven entry opportunities and an individual trade leg length that allowed for a good risk reward ratio. We recommend our quad exit strategy for multiple entry traders. We also post our own trading completely transparent in real time in our free telegram channel.

 

Who will win?

 

Precious metals, bonds, real estate, and fiat currencies are typical components for wealth preservation… But is it still that easy to be on the safe side? Physical delivery shortages on gold and silver already make some hedgers sweat. A long term bond investment would assume a clarity about world dominance in economic power. Covid-19 has shown how quickly economic powers can be influenced. The real estate bubble is about to burst. Fiat currencies are in themselves worthless and are upheld only by beliefs. Are we facing a monopoly, a digital global currency, centralization, decentralization, crypto currencies… Who will win?

 

Buying brand, and waking up rich thirty years later is certainly no way to go anymore! A regularly reevaluated portfolio of various components seems, in the time of major change, to be a route of success for now.

 

If you like to get regular updates on our gold model, precious metals and cryptocurrencies you can subscribe to our free newsletter.
 

If you would like to learn more about Bitcoin fundamentals, check out the ultimate guide here.
 

disclaimer

CHAIA.iO is not a registered investment, legal or tax advisor or a broker/dealer. All investment/financial opinions expressed by CHAIA.iO or the authors of the respective articles on www.chaia.io are from personal research and experience of the owner of the site or the authors and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors or misprints may occur. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

Korbinian Koller
Technical Analyst