How to Trade Bitcoin



hi I'm Mike new to sing and trigger at us little investors today we want to talk about Bitcoin and being on the right side of the market the study of price action also known as technical analysis or also quantitative analysis is intended to help investors and traders formulate investment decisions to help you stay on the right side of the market one of the reasons why I prefer to apply technical analysis to the decision making process is that it generally focuses on price and the belief that prices of product of all known information from all participating investors therefore daedalic earnings per share of p/e ratios and balance sheet data become less relevant in the decision making process from a traders view it doesn't matter what the asset is how volatile the price needs to be or what the meetings of payments are we apply technical analysis to identify opportunity and adjust the proper amount of risk so if the asset is moving traders are going to trade it in some position size accordingly to further build on this theory let's take a look at Bitcoin here's a graph displaying bitcoins correlation to better the general market common beliefs are that readings between minus 35 and 35 are not correlated that is each asset price action is independent of each other as you can see it doesn't correlate to the general stock market it's volatile and for the most part we put three good qualities needed to assess if the asset should be added to a trading portfolio now that we've established Bitcoin could help diversify then when in a technical aspect does it seem beneficial to enter into a trade or exit an existing position for the intermediate term trader on the six-month graph of Bitcoin you know the trend has been down to the writing not favorable for being long the asset and further to the weight of evidence bitcoins last prices below the 200 period trendline again not conducive for price appreciation now that we know the trend is down let's look at the high and low prices Bitcoin is yet to trade us at a significant higher highs since December of 2018 and evidenced by the lower lows established in February April and now June it is yet to look like a firm bottom has been established this tells us that asset is heading to to be in traction and that this point is not quite right for an intermediate term trade if but whatever reason I would long Bitcoin it would be prudent to seek rallies in which to either lighten up or flat-out sell a position and monitor the asset for the time to get long indication I would do this by monitoring the asset looking for a series of higher high prices and higher low prices therefore based on the recent data I would consider established in a position if the price were to trade above $1,000 per coin before reaching another lower low keep in mind if this downturn continues to buy indication levels will decline also for the latest updates on Bitcoin and crypto currencies be sure to subscribe to our investor alert thank you and happy trading [Applause]

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