Coin Zone Trends: Bitcoin Price Trends Based on Big Data This Week (2017-09-06)

The price of the currency shows a deep V again. Pay attention to market dynamics
1. Market Trends <br/>Today is September 6, 2017. The current price of Bitcoin is 27,500 yuan. Yesterday morning, the price of the currency fell sharply, once touching the 22,500 line, but then rebounded strongly. It can be said that the price of the currency has once again formed a deep V pattern.
It is a consensus among investors that each market has its own characteristics. For example, the head and shoulders pattern is very popular in the soybean futures market, while the triangle pattern often shows its strength in foreign exchange markets such as the USD/JPY. In our Bitcoin market, the deep V pattern is a relatively common pattern. However, the deep V pattern is the most difficult to analyze in all technical analyses.
According to the recent trend of Bitcoin's deep V pattern, it usually appears after the completion of five waves, and the fifth wave has a larger amplitude and heavier trading volume. Investors can grasp this common pattern accordingly.
Back to the point, looking at the 1-hour chart, after breaking through the downward channel pointed out in yesterday's analysis, the price of Bitcoin continued to climb upward and is now entering the upward channel. Although the MACD indicator and trading volume are not large, you can still buy when the price suddenly touches the lower support line and shows upward signs, but it is not recommended to increase your position near the upper resistance line.
This round of Bitcoin price decline is due to the excessive increase in the previous period on the one hand, and government regulation on the other hand. In the long run, government regulation of the industry is conducive to the healthy and sustainable development of the industry. However, the risks accumulated by the excessive increase in the previous period should not be ignored, and the market dynamics should be kept in mind at all times.
Similarly, Ethereum has shown signs of a strong rebound since yesterday. From the 1-hour chart, it is also after the completion of the fifth wave. Whether it is Bitcoin or Ethereum, we should pay attention to the MA120 resistance line on the 1-hour chart. Short-term profit can be temporarily stopped near it.
2. Price trend index "Bitcoin price trend index" is an indicator similar to the "long and short index" compiled by Coinzone based on statistics from domestic and foreign Bitcoin trading platforms. The purpose of the indicator is to analyze the distribution of long and short forces in the current market in order to better analyze and judge price trends.