Re: Why Bitcoin is Declining? And What’s Next?

Quote from: arpon11 on July 30, 2019, 03:54:14 PM

Quote from: Monfex on July 28, 2019, 11:08:19 PM

Why Bitcoin is Declining? And Whats Next?

Its important to emphasize that the current downward move were seeing right now is a corrective wave within an upwards trend, and not a trend reversal.
In case of BTC, a hypothetical decline below a significant support at $7,500 would send a strong signal of a possible trend reversal. The retracement were observing now is a market noise - meaning, it is a short-term trading volatility that does not alter the long-term trend for Bitcoin .

In bull markets, corrective waves occur regularly, since any price trend, by definition, consists of a series of waves and counter-waves.
Both technical and fundamental approaches to market analysis indicate a positive long-term outlook for Bitcoin. Currently, the price is adjusting downwards closer to its mean value (i.e. central tendency), which creates a good opportunity to buy Bitcoin with a tight stop-loss, thus ensuring an attractive risk/reward ratio.

The fundamentals of the Bitcoin network are improving every month - we are seeing increasingly higher numbers of Bitcoin active wallets, Bitcoin daily transactions, and Bitcoin hash rates, all of which indicate an increasing demand for Bitcoin . For example, an increase in the number of Bitcoin active addresses used is associated, by definition, with an increase in global adoption and use of Bitcoin. This translates into increased demand for Bitcoin, which leads to an increase in Bitcoin market price. Since the trend of improving fundamentals continues upwards, were expecting to see further price increases of Bitcoin .

Active Trade Signal:
- Buy at $10,000
- Take-profit at $15,000
- Stop-loss at $8,000
- Forecasted P&L: $50,000 per 1 lot with 10x leverage
- Risk/reward ratio: 1:2.5 (very attractive)

Many people especially the fundamental traders will not understand the principle behind Eliot waves theory, the Fibonacci level and pivot point and as such any pull back is always be taking as trend reversal. I have been in trading of liquid assets for more than ten years and when I see people talking about trend reversal in the face of the little move, I always see them as an ill inform traders or investors and it is because of the fear that the whales are make good money. I think we are still strongly in a bullish trend and this bullish trend is going to last till the end of next year.

BTC is still up 154% YTD so it has been bullish the whole year overall. But since July 10, we have been seeing a steady downwards trend recording lower lows, and lower highs.