Chart of the Day: Detailed Bitcoin Analysis

Based on the latest chart of Bitcoin, it looks like it is undergoing a major correction.

After hitting highs of almost $20k, it has started to form a corrective pattern between $12k and $17k, and there could be more to come.

After the first initial move down (the blue sell arrow) which was mentioned in our previous blog post, there was a corrective a-b-c wave, which could be a corrective wave within a larger corrective wave, with the 2 pink rectangles being wave a and wave c respectively.

If that is the case, the end of wave c will be around $9k, which is quite close to where the old trendline is.

Lastly, we also pulled out a Fibonacci Retracement on the whole price history of Bitcoin, and drew in a red rectangle to indicate the 50-61.8% retracement range. For major corrections, this is where it usually ends. If it breaks below the red rectangle, then it becomes a reversal instead of a correction. The red rectangle is between $7.5k and $10k.

For conservative long-term investor, you can wait to accumulate inside the red rectangle.

However, if price goes above point c (around $17k), then it would invalidate the pattern, and the uptrend would likely continue to surpass $20k, so I am prepared to buy on a break above $17k as well.

Follow-up on GBP/AUD Trade – US$2,966 Profits Locked in!

Following up on our major trade call of the week, we have locked in US$2,966 of profits for the week on this one trade, and many of our hardworking forum members have also been doing their homework (15 minutes a day) and reaping the rewards from the markets.

If you are unsure where to start or are unable to achieve consistent profits, join our friendly community in this FREE forum and get started immediately!

Crypto Portfolio Update (11/01/18): 294.86% Profits Over 42 Days!

Just did a quick rebalancing of my Crypto portfolio, which is currently up 294.86% returns after 42 days.

Took profits on some huge gains like Lisk, NEO, Monero, Achain, ZenCash, VeChain, and Request Network.

Added/opened positions on some that have dipped slightly, such as Ripple, Stellar Lumens, Cardano.

Lastly, I increased cash position to 10%, in case there is a buying opportunity on a correction, since prices have been going up quite strongly recently. If prices continue to go up another week, I might increase cash position to 15%.

Remember to trade cautiously, and not be too greedy!

New Video: #AskSpencer Anything! – Episode 1

In this video, I answer some questions from one of my blog readers:

  • Is your current risk management at 1% or 2%?
  • Are you more of a swing trader or position trader?
  • What is your Stop Loss strategy and exit strategy?
  • Do you scale up your trades? I saw your video that you keep your open trades at 6%, so if your trades are at 6%, you totally stop trading? even if there is a good trade setup?