Taking Long Positions in Bitcoin is Comfortable: Former BoA Trader

Taking long positions in Bitcoin should be comfortable for traders, according to Naeem Aslam.
The former equity trader with the Bank of America said Thursday that he would purchase bitcoin if the crypto-asset compliments a crucial technical indicator.
Dubbed as Moving Average, it allows traders to calculate an average asset value for a given period after removing noisy price movements.

Altcoin Apocalypse: Only Two of Top Ten Crypto Cap Have Outperformed Bitcoin
Monday August 12, 2019

The further Bitcoin has climbed, the worse the altcoin market has suffered, to the point many are calling for an altcoin apocalypse that takes the price of most crypto assets to zero, except for...

The post Altcoin Apocalypse: Only Two of Top Ten Crypto Cap Have Outperformed Bitcoin appeared first on 12bitplay - Bitcoin Play.

Should you buy #Bitcoin now? Here is a methodological approach which can help you.$XRP token is still holding above 0.30 and it shows bears are running out of steam pic.twitter.com/Hvi0zatQCK
— Naeem Aslam (@NaeemAslam23) February 28, 2019

Crypto Investors Believe There’s More Pain Ahead For the Altcoin Market
Tuesday August 13, 2019

Bitcoin has had near non stop bullish momentum throughout 2019, but the altcoin market hasn’t been near as fortunate – sans a couple of outliers. The sentiment surrounding altcoins is in the gutter, and...

The post Crypto Investors Believe There’s More Pain Ahead For the Altcoin Market appeared first on 12bitplay - Bitcoin Play.

200-Week Moving Average of Bitcoin a Crucial Support
Aslam illustrated a weekly chart, which showed BTC testing a 200-week simple moving average as support. According to him, if traders buy BTC above the said support, they would be technically purchasing the asset at a prime rate.
For instance, if the bitcoin price at press time is $3,966, and its previously established bottom was at $3,100, then a trader would purchase bitcoin by paying an additional $866.
Illustration of a similar bitcoin chart used by Aslam | Source: Tradingview.com
“For over the span of two to three to four years – that’s how the life cycle goes when it comes to the price action – paying a premium on bitcoin is not a big problem if it is going above $20,000,” explained Aslam. “So that is where the argument is.”
Aslam’s argument followed months of discussion about whether bitcoin established its bottom near $3,100. Many analysts predicted that the cryptocurrency was due to another bearish breakdown.
Bloomberg in December 2018 reported that they expected BTC to drop as low as $1,500 in the coming months. Nevertheless, the cryptocurrency managed to float above the said bottom since its first marking.
But, according to Aslam, 200-week moving average represents a strong bull case. The chief market analyst indicated that BTC wouldn’t fall into a bull trap as long as it’s price stays above the average. At press time, the 200 SMA on BitFinex is near $3,379.
Zooming In
Illustration of a similar bitcoin chart used by Aslam | Source: Tradingview.com
Aslam also discussed the interim factors that were driving his bitcoin positions. He noted a lower low developing out of a recently-started downtrend.
While the bearish move didn’t mature into a breakdown action, Aslam said that he would be more likely to take long positions in BTC if price forms a higher high. In simple terms, the upcoming candle formations lowest price should be higher than the lower low indicated in the chart illustration above.
While Aslam’s prediction expires in a three-four year span, traders are already battling with an active resistance area which would need breaking in the near-term. Bitcoin has failed to cross above $4,299-4,488 range since November 23, 2018.
Speculators believe that the launch of Bitcoin derivatives, including futures and exchange-traded fund, would bring billions of dollars into the industry. And then, the bitcoin rate will push beyond the said range.
The post Taking Long Positions in Bitcoin is Comfortable: Former BoA Trader appeared first on NewsBTC.

What is US Yield Curve and Why is it Tickling Bitcoin Investors?
Thursday August 15, 2019

What if there is a way one can predict the next recession accurately? Except, there is none. But thousands of market experts, including economists, fund managers, and traders, still rely on something that help them...

The post What is US Yield Curve and Why is it Tickling Bitcoin Investors? appeared first on 12bitplay - Bitcoin Play.

You may also like...