BTC/USD Bitcoin Update! 11/6/2019
Обновлено
So the choppy consolidation trading we have been stuck in makes drawing any short-term conclusion difficult. However, there are a few noteworthy factors that should be taken into account when looking at the current market structure.
1. BTC just posted an overwhelmingly Bullish set of chart patterns. First, we broke out of a falling wedge on high volume. Falling wedges are one of the most agreed upon bullish chart patterns, but the import factor of the breakout is volume. A break out under weak volume signals low investor/buying confidence and leaves the door open for further waves of selling. As with most chart patterns or technical analysis, the supporting volume is of paramount importance. Secondly, we clawed back above the 200 daily MA and have now found it to act as support over the past week as the price gradually trends higher.
2. One of the biggest criticisms of the cryptocurrency space is that a technology designed to be used as a medium of exchange is being largely used as a speculative investment vehicle. This criticism certainly has some merit, however, I want to point out a growing trend that speaks against this. There is a trend of Bitcoin adoption coming from a place boasting one of the highest percent of unbanked adults in the world, South America. A quick look at the weekly volumes of LocalBitcoin in South American countries compared to the rest of the world paints an obvious picture. Many countries had huge spikes in demand on LocalBitcoins during the 2017 hype and have since weaned off. The volumes from South American countries, on the other hand, have been on a steady uptrend. This shows that this revolutionary technology is potentially filling the exact void it was intended to. The unbanked and banked alike that live under oppressive or unstable governments are seeking alternative stores of value to flee the corruption and hyperinflation that plagues their crumbling local fiat currencies.
So without diving too deep into the economics of cryptocurrency adoption, it seems to me that the fundamentals drivers are pointing to increased adoption and the technicals point to a bullish market structure. This coupled with the looming halving event and the bullish stock to flow ratio leads me to believe higher prices are on the horizon.
Happy trading!
Comment your thoughts on Bitcoins next move!!
1. BTC just posted an overwhelmingly Bullish set of chart patterns. First, we broke out of a falling wedge on high volume. Falling wedges are one of the most agreed upon bullish chart patterns, but the import factor of the breakout is volume. A break out under weak volume signals low investor/buying confidence and leaves the door open for further waves of selling. As with most chart patterns or technical analysis, the supporting volume is of paramount importance. Secondly, we clawed back above the 200 daily MA and have now found it to act as support over the past week as the price gradually trends higher.
2. One of the biggest criticisms of the cryptocurrency space is that a technology designed to be used as a medium of exchange is being largely used as a speculative investment vehicle. This criticism certainly has some merit, however, I want to point out a growing trend that speaks against this. There is a trend of Bitcoin adoption coming from a place boasting one of the highest percent of unbanked adults in the world, South America. A quick look at the weekly volumes of LocalBitcoin in South American countries compared to the rest of the world paints an obvious picture. Many countries had huge spikes in demand on LocalBitcoins during the 2017 hype and have since weaned off. The volumes from South American countries, on the other hand, have been on a steady uptrend. This shows that this revolutionary technology is potentially filling the exact void it was intended to. The unbanked and banked alike that live under oppressive or unstable governments are seeking alternative stores of value to flee the corruption and hyperinflation that plagues their crumbling local fiat currencies.
So without diving too deep into the economics of cryptocurrency adoption, it seems to me that the fundamentals drivers are pointing to increased adoption and the technicals point to a bullish market structure. This coupled with the looming halving event and the bullish stock to flow ratio leads me to believe higher prices are on the horizon.
Happy trading!
Comment your thoughts on Bitcoins next move!!
Заметка
Worth noting that we are beginning to show some bullish divergence on the 4 hour chart. Really looking for the price to move above 9500 to take us out of this consolidation. 
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