Bitcoin Technical Analysis: How to Predict Bitcoin Prices?
Jan 25, 2016 --- (ARCHIVED) BBA Articles
Bitcoin Technical AnalysisBitcoin Technical Analysis was started by us in 2010, just some months after bitcoin was "born". However, technical analysis
has not been new at the time. In fact, it has been and still is very popular in financial markets.
Over the past five years, bitcoin prices have been going through very volatile phases, followed by very stable, low volatility periods. Most recently, we are seeing one of those low volatile, stable periods. In our bitcoin forecast, we continuously analyze 24/7. And we cover all possibilities for all key angles:
- Protect long-term bitcoin holders from losses
- Help day-traders to make profits
- Support intermediate investor and swing traders finding the right entries and exits
- Educate trading novices on technical set-ups and money management methodologies
How To Predict Bitcoin Prices?A lot of people still hold significant stashes of bitcoins: Miners, early adopters, merchants, bitcoin speculators and bitcoin traders.
The bitcoin market went up almost all the time between 2010 and 2014, but since then prices declined and traded more or less sideways since then. However, even in this period, there are huge bitcoin price swings. It is quite important to look out for proper bitcoin technical analysis to avoid getting caught on the wrong side and also help making profit from those wild swings.
A proper bitcoin technical analysis and strategy at hand can be used for good protection or hedging strategies: (i) Bitcoin holdings can be sold prior to big declines and then bought back at bottoms, or (ii) Bitcoin short positions can be opened (e.g. at bitfinex
, IG markets
) to hedge against bitcoin price declines.
Predicting Short Term BouncesAs one example of short term bitcoin trading opportunities, we have seen a strong indication for a hefty decline on January 15, 2016: In our member section, we issued this to subscribers: " **Bitcoin ProTrade - [1/15/2016]**: Consider a LONG position on a pullback to the 350 $ area ...". This is visible in the chart below in the right green shaded rectangular zone.
Bitcoin Technical Analysis Chart from January 15, 2016
Bitcoin Price Decline and Subsequent Bounce Up MaterializedAs the bitcoin technical analysis chart below shows, bitcoin prices dropped right after our short term alert. A massive loss of more than -50$, equaling -13%, was the consequence. And the bitcoin price prediction also worked in terms of turn around.January 18 short term update from Bull Bear Analytics: "Indeed our 355 $ buy target was a prescient one given that the local low was 352.5 $, and seeing as though prices are now 30 $ higher."But this was not the end. Bitcoin prices shot further up into our target zone of 420 - 430 $ where we suggested to close the trade on January 18/19 (see red shaded rectangular zone). At about +67$ profit per bitcoin, equaling a +20% gain in only a few days.
The final chart can be seen from our bitcoin technical analysis on January 22: We caught the big decline and then the subsequent 67% rally, using our proprietary technical indicators and methodology.
If anyone wants to get the insights into the methodology of bitcoin technical analysis, we give detailed probabilities on the directions of bitcoin prices in the member section. Beating the "buy and hold strategies" is one of our missions and this exceeded returns by 1,662 %.We even have a special offer for our best Expert Pro service at only 99.95 $ for a limited time. Only Expert Pro members get those special timely Pro Trade opportunities and direct access to our chief analysis in our Premium Chat.
Have a great BITday!
---Do you want to learn more about Bitcoin price, Our Premium In-Depth Weekly Report, Daily Updates, and real-time Price Alerts? Please visit BullBear Analytics now! The Bitcoin and other cryptocurrency forecast are available as part of the Active Pro Complete package.Disclaimer: Please always do your own due diligence, and consult your financial advisor. Author owns and trades bitcoins and other financial markets mentioned in this communication. We never provide actual trading recommendations. Trading remains at your own risk. Never invest unless you can afford to lose your entire investment.