Coin Zone Trends: Bitcoin Price Trends Based on Big Data This Week (2017-05-16)

Risk aversion, cash is king
1. Market Trends <br/>Today is May 16, 2017. The current price of Bitcoin is $1558.14. Yesterday morning, the price of Bitcoin fell sharply, hitting a seven-day low. Afterwards, the price of Bitcoin slowly rebounded, but there is still a long way to go before it can recover the lost ground.
Looking at the daily chart, the moving average system (5, 10, 20) still shows a bullish arrangement pattern, the MACD indicator shows signs of forming a death cross in the strong area, and the stochastic indicator and the strength index both extend southward from the hovering area to the oversold area, indicating that the market supply is strong at this stage and the currency price rebound faces greater pressure.
Looking at the 4-hour chart, the bullish pattern of the line system has been destroyed. The MACD indicator crosses the zero axis downward, indicating that the short-selling capacity is gradually increasing. However, due to the large drop yesterday, the bulls counterattacked and recovered some lost ground after the oversold, so the stochastic indicator and the strength index both extended northward in a bullish pattern. The K-line combination at this level shows a relatively obvious M-shaped pattern. If the neckline cannot be effectively broken (as shown in the figure), the price is likely to fall again.
Overall, the bullish pattern of the coin price has not changed, and there is a need for adjustment in the short term. For long-term investors, it is enough to lock in some profits appropriately, and short-term investors can enter the market with a light position after the coin price effectively breaks through the neckline. At present, the operating strategy is mainly risk avoidance, and cash is king in terms of measures.
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.