Coin Zone Trends: Bitcoin Price Trends Based on Big Data This Week (2016-11-18)

The fierce battle between long and short positions takes time to consume the profit
1. Market Trends <br/>Today is November 18, 2016. The current price of Bitcoin is 5220 yuan. After the price rose from 4900 to around 5400, it has now adjusted back to 5200 yuan, which is exactly 61.8% of the golden section line, and is also the price range where it stayed slightly during the rise. Yesterday, the long and short battles were fierce, and the price had reached above 5400 three times. It is lonely at high places, and the price was quickly pushed down after it went up.
Let's look back at the situation when the price of Bitcoin broke through 3,000 yuan this year. From January to June this year, for a full six months, the price of Bitcoin was strongly blocked by the 3,000 yuan line. After breaking through, it rose sharply for three days, rising to nearly 4,000 yuan at an average rate of 10% per day. This is the so-called "the longer the horizontal, the higher the vertical". After three consecutive days of rising, it began to fall and consolidate on the fourth day, and the maximum correction went to 3,500, which was almost a 50% correction of the increase.
Now let's analyze the current price trend. If we calculate based on the last two months, the first time it reached 5,000 was on October 28, which is less than a month from today. In the past 20 days, the price of the currency has tried to break through 5,000 four times, and only the last time it successfully broke through and went up a relatively long distance. Compared with the breakthrough of 3,000 yuan, the power accumulation this time was only one month, while the 3,000 yuan accumulation took 6 months. The power of this rise is still slightly lacking.
At present, there are many profit-taking positions accumulated since the price reached 4,000 yuan. There is considerable selling pressure in both short-term and medium-term. The holding time is less than one month, but the return has reached more than 25%. Most people's rational operation should be to sell the currency temporarily and recover the principal. According to this analysis, it may take a while to consolidate. When the price of the currency stabilizes above 5,000, relevant investment and speculative funds will enter the market one after another. The general trend is still optimistic. Medium-term investors can open positions at low prices, but short-term participation is not recommended for the time being.

Looking at the data, normal thinking is consistent. When the currency price rises to more than 5,000 yuan, the long-short index tends to be slightly bearish, and the newcomer index is still full.
2. Price trend indicators
The "Bitcoin Price Trend Index" is an indicator similar to the "Long-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.