The Bitcoin Core devs are working on a change that they say could give the BTC price a parabolic start and even more on what that change would be. This could give us a new indicator we have not seen before for years. What do you think?
Now, this is what’s called an EMA trading system. It’s like a ‘trading system’ or ‘trading market’ or something. The other day I ran into this new indicator while using it. I wanted to use it because a new indicator is available to us; the Bitcoin Core devs are working on some new market elements that could give us a new indicator. On my computer, the indicator was flashing back and forth between $1100 and $1000 on the day that I was testing this indicator. The Bitcoin base price was only trading around $2000 on that date (see chart below).
Bitcoin price chart (Bitcoin/US Dollar)
What I’ve found is that people see a certain trend as positive and more recent highs as negative and slower lows as positive. Therefore, the price of Bitcoin is more likely to shoot upwards (and vice-versa) and to shoot down (and vice-versa) or even to just oscillate around some trend line or chart (see the chart below). I call this ‘chasing’ the trend line or chart even.
For example, let’s say that the recent recent highs and lows are $2000 and $1200. It seems fairly possible that the higher the price of Bitcoin will get, the lower this recent high will rise. If it stays around $1200, it would be unlikely for this price to continue rising at a rate that could be considered a true market high. As of right now, $2300 is just about the current price of one Bitcoin. From my point of view, $1800 is probably the most reasonable and likely new high of the Bitcoin price on November 8. At this point the Bitcoin price could still rise from $2500 to $1900, and even from $2000 to $2000. What would this market be like? In other words, the Bitcoin price could be riding the bull trend line, which we are currently experiencing at the moment.
Wherever that trend line goes or is pulled away, it sets in motion a new and unknown market for Bitcoin that I’ll call the ‘Bitcoin price oscillator’. I refer to this as the Bitcoin price oscillator, if you’ll excuse the pun. At the moment Bitcoin is trading at the top of the Bitcoin price oscillator. It would seem that the BTC price is going to follow the Bitcoin price oscillator until it hits $2300 as discussed above. But wait, a new Bitcoin price oscillator could be going into effect any second now! That makes it very difficult to predict when that will be. Let’s say the Bitcoin price goes past $2300 on January 9, 2017. At that point the Bitcoin price might be at $2500, and another oscillator might be set into motion in the Bitcoin price. This is where it gets a little tricky; it seems that the Bitcoin price might follow the Bitcoin price oscillator until the market high reached on November 8. At that moment, the Bitcoin price would be at $2600. On November 9 that would be a new market high right? That would be a true market high for Bitcoin. I know it seems that there are a lot of people who are skeptical of this new indicator. But, I want to argue in advance that the Bitcoin price will not even be able to keep up, let alone exceed the average market maximum for the last year. I believe we already know that the Bitcoin price can be pulled towards the trend line. And, I think that a new indicator that was released today could be driving the prices upwards even faster than those prices.
We don’t just use technical indicators; the chart above is a price oscillator itself. We think that the Bitcoin price is going to change direction at some point - that it is going to shoot up! It’s just a matter of time.
What did I miss? Have any of you guys ever noticed these things up in these charts? What do you think? Does it make sense to you? Do you think I took your money, though? Let me know in the comments below!