Markets

BTC/USD Forms an Evening Star Chart Pattern, Buffett Shades Doubt on Bitcoin

BTCUSD Analysis: As we predicted in yesterday’s video, Bitcoin price saw a pullback versus major counterparts including the USD on Monday. This was a result of a combination of market sentiment and fundamental news. Here is the IDDA approach to strategy development for the BTCUSD pair.

Disclaimer: Trading cryptocurrencies could be very risky. Speculative trading is even riskier. Before entering a position, you must calculate your risk tolerance to be able to decide on the investment strategy that is suitable for your portfolio. Attend this free MasterClass to learn more.

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BTCUSD Analysis - Technical Points

The first point of the IDDA focuses on technical analysis. The BTC/USD pair formed an evening star candlestick pattern on the daily chart, after reaching the all-time high above $7,600 last week. The price touched the lows of $6,900 during the intraday trading and closed at around $7,100.

Our key medium-term support level is set at the 38% Fibonacci retracement level of $6,575. This Fibonacci setup retraces the medium-term BTCUSD uptrend from the lows of $3,296 in the middle of October to the record highs above $7,600.

BTCUSD Analysis - Daily Chart

On the 4-hour chart, however, the pair remains supported by the upward-moving Ichimoku cloud. The Kijun line has just broken below the Tenkan line on the Ichimoku Kinko Hyo's 4-hour setup. Our key short-term pivot points are set at the 23% and 38% Fibonacci retracement level of $6,870 and $6,651 respectively.

BTCUSD Analysis - 4 Hour Chart

This Fibonacci setup retraces the most recent BTCUSD uptrend from the lows of $5,708 end of October to the record highs above $7,600.

Learn about Ichimoku - Fibonacci Strategy Development

BTCUSD Analysis - Fundamental Points

The second point of the IDDA focuses on fundamental analysis.

The greatest investors ever, Warren Buffett, has recently said that “You can’t value bitcoin because it’s not a value-producing asset. It's a real bubble in that sort of thing.” This basically means that to him, Cryptocurrencies are not tangible investments. And since the whole cryptocurrency market is not regulated, is not under control, is not under the supervision of any United States Federal Reserve or any other central bank, Buffet thinks it's going to implode.

I certainly was on the same train for the past 8 years, but as the blockchain industry strengthens its position across different markets, the survival chance of at least some of the superstars of cryptocurrencies, such as Bitcoin, increases

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Sentimental Analysis: The third point of the IDDA focuses on market sentiment. Earlier during Tuesday's Asian session, the BTCUSD trading crowd showed slight bullish signs. The short-term resistance level is set at $7,147.

Trading Strategy: As the 4th point of the IDDA, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Join us for a free MasterClass to learn more.

Here are Invest Diva's calculations for important approximate levels for your BTCUSDanalysis

Support Levels Turning Point Resistance Levels
6,107 6,651 7,147
6,416 6,870 7,574

This article was originally published on InvestDiva.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Kiana Danial

Kiana Danial is an award-winning, internationally recognized personal investing and wealth management expert. She is a highly sought-after professional speaker, author and executive coach who delivers inspirational workshops and seminars to corporations, universities and entrepreneurial groups. She is a frequent expert on many TV and radio stations and has reported on the financial markets directly from the floor of NYSE and Nasdaq. She is a weekly investment expert guest on Tokyo’s #1 Investment TV Show. She has been featured in The Wall Street Journal, TIME Magazine, CNN, Forbes, The Street, and numerous other publications. Kiana’s book "Invest Diva's Guide to Making Money in Forex" was picked by McGraw-Hill only two years after she first moved to the US, and was an immediate domestic and international success. At a young age, she has won numerous awards including Best Financial Education Provider at Shanghai Forex Expo in 2014, New York Business Women of Influence Honoree in 2015, and Pro Bono Humanitarian Award by IA Bar Association in 2013. Born and raised in Iran to a Jewish family as a religious minority, she was awarded a scholarship from the Japanese government to study Electrical Engineering in Japan, where she obtained two degrees in Electrical Engineering and researched on Quantum Physics in classes conducted in the Japanese language. Being the only girl and foreigner in her classes made her decide to dedicate her life to empowering minorities, especially women in male dominated industries. As the CEO of Invest Diva, Kiana’s goal is to empower and educate women to grow their wealth by investing like a ROCK STAR.

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