Bitshares Technical Analysis for 03/31/2016 – Breakdown of Bitshares

Technical Analysis for Bitshares/Bitcoin

Yesterday I shared with you some technical analysis as we exited a pattern. For those of you that are probably thinking you missed the boat well here is a similar pattern that hasn’t played out yet.

It is basically the same reversal pattern and you generally trade it when price exits the pattern to the upside, but as always be patient since this pattern can literally take days/weeks to play and of course we don’t even know if it will. Patterns are never 100%, however they help to limit our risk.

What I have noticed though is the various U shaped actions of this pair. Some may figure this is pumping and dumping, which many onlookers will claim, while others (possibly) less cynical persons may just see normal price action as the value traders are willing to pay. What ever your view it should be noted these “U shapes ” are occurring with decreasing volatility as traders lose interest in this pair, which might make price action more random going forward and potentially more dangerous. If you are trading the lower volume altcoins, such as this one, you probably knew this anyway.

Depending on your trading style you may like the new slower price action though, good luck !
Over the weekend  I intend on sharing a fundamental reason you may wish to consider buying Bitcoin. Gasp!

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Disclaimer: This is not trading or investment advice.