There are many factors that affect the price of Bitcoin alone and on particular days. Like the CME gap, which occurs due to the weekend price action in BTC price has been a characteristic feature of the asset.
Similarly, there are analogies with days of the week in relation to price action. As reported on CoinGape earlier, Mondays and Saturdays are the best days to engage in Bitcoin trading. This independent research by Joel attempts to find the direction to flow to make an informed trade.
Re-tweeting this independent research, SalsaTekila, a popular crypto trader noted,
If you know how math works, you know Friday is the most profitable day to go knife-catching a weekly bottom wick into support.
Quick Buy Backs by Bulls – Whipsaw!
During last year, Bitcoin witnessed a long periods of bearish downfalls in a structured descending channel. Moreover, what has kept the bulls interested is the quick reversal from bottoms.
In the last three times when Bitcoin dropped to swing lows, the falling knife soon turned into a whipsaw. It is describes as the price action moving in one direction but then quickly pivots to move in the opposite direction.
The marked regions in the chart indicate the quick reversal on a four hour chart. In 2019, Mondays and Wednesdays have been critical days to catch the knife into a whipsaw.
Nevertheless, according Joel, historically, on days when Bitcoin records a high on Monday, Thursdays and Fridays have seen swing lows before reversal.
More Useful in the Short-Term
While the above analysis and view has a high frequency of occurrence, their results are restricted in shorter time frames.
The CME close for the week is also due later today. Hence, even in case of strong positive action over the weekend, the traders will be apprehensive of the bullish gap filling next. Furthermore, the trend at large is more likely to control the price action.
Do you think Bitcoin will continue to record lows or find support above $6500? Please share your views with us.
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