Coin Zone Trends: Bitcoin Price Trends Based on Big Data This Week (2017-08-04)

The supply increased during the day, so do not add positions to chase highs for the time being
1. Market Trends <br/>Today is August 4, 2017. The current price of Bitcoin is 18,800 yuan. Yesterday, the price of the currency fluctuated upward in a narrow range, and encountered a significantly increased supply when it climbed to around 19,000. Yesterday's analysis pointed out that as the center of gravity of the currency price moves upward, the market is constantly digesting negative information, and there is a possibility of an oversold rebound.
Currently, the price of the currency has encountered obvious resistance after climbing to around 19,000. For intraday short-term investors, they can lock in profits and avoid risks, or at least not increase their positions to chase high prices.
Looking at the 1-hour chart, the price of the currency broke through upward after a short break below MA120, setting a two-day high. Although the MACD indicator has crossed the zero axis, a top divergence phenomenon has occurred. In addition, the Bollinger Bands began to open upward, and the moving average system showed a bullish arrangement.
Many investors believe that the price of the currency will fall immediately when the MACD indicator shows a top divergence. Backtesting the historical price trend shows that the appearance of this bearish signal does not mean that the price will fall immediately, and there may be a second top divergence. However, whether the bulls are trading sideways to digest this bearish signal, or there will be several consecutive divergences in the future, we cannot choose to ignore this signal, and we should be vigilant and cautiously increase our positions to chase high prices.
From the daily chart, the upward trend of the currency price has not been confirmed, and the general direction is still oscillating and adjusting. Therefore, in the short-term trading in the short cycle, you should avoid being too greedy and strictly set stop loss and stop profit. This also means that for conservative investors, they still need to wait patiently for the opportunity.

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.