The CoT or Commitment of Traders provides us key information of where Bitcoin will proceed over the next 2 Weeks. Currently $6400 acts as a resistance. BTC needs to go to $6127.80 to re-set before increasing.
Long-Term Investors need to be aware of where BTC will be going in order to enter the best position they can in an ALT-COIN. This Daily Segment will explain where BTC plans to go based on this.
Ultimately, Nouvive is telling Long-Term Investors to not fall for Andy’s Fallacy. This is the fallacy of entering into FOMO or Fear of Missing out into a coin and making 15% losses – waiting for the coin to bounce to break-even levels.
What does the Commitment of Traders Suggest?
- Higher Long or Buy interest than Shorts
- Longs have increase by an average of 23% Week on Week.
- Many institutional investors are de-leveraging their positions – explains current weak volumes.
- $6058 will act as support based on Institutional investors entering longs there.
What does the Technical Analysis say?
- The On-Balance Volume illustrates that since August there is heavy accumulation even from the $6058 level all the way to $6500.
- OBV also explains that BTC will be going down one more leg
- Lack of Volume in the market, well below the 90D Average (Looks at the previous 90Days to explain whether this volume is the norm)
- Lack of volume can be indicative that a big move will happen
- Based on the MA15 (Moving Average 15) it is highly indicative that a move down will occur as the MA15 is currently acting s a resistance.
- On the HTF (Higher Time Frame) of 1Day, there are constant higher lows and lower lows.
- More sell side volume than buy side.
- RSI Stochastic has crossover, showing a double top, the historical bottom for this will be at just above $6000.
Nouvive recommends a Long-term Investor who wishes to enter into a coin to look at said coin, Minus 30% from its current value and enter a purchase level there.
Nouvive recommends for those that do not want to do the above, to alternatively manually enter a position once BTC hits $6053.
Bearing in mind that the Altcoin market has been up since August 15th, however all Altcoins are positively corrolated to BTC by an average of 0.88 – meaning BTC going down indicates Alts go down by an average of 25% – Figures taken from Nouvive Research.
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