Will Bitcoin continue its bullish move?
For the first time in its (relatively brief) history, Bitcoin has crossed the $100,000 mark as investors remain bullish heading into the last month of the year's trading activity.
While Bitcoin is identified as a "crypto currency", the Socrates Platform categorizes the digital asset as a commodity - not a currency. Data shows it's primarily treated as an asset to trade or speculate, not to regularly pay for goods and services. Given it's limited supply, some see a future where Bitcoin is a reliable ‘store of value’ asset, similar to Gold or Silver, despite it's relatively high level of volatility.
Regardless how anyone classifies Bitcoin or its future relevance, time will ultimately prove out what Bitcoin's role in society will be, but for now our attention is the study of technical price movement for an unbiased, data-driven perspective.
For reference, take a look at the Daily, Weekly and Monthly price charts below.
As always, pay close attention to the trend lines and the Energy Model when studying the price charts on the Socrates Platform. When the Energy Model spikes well above its moving average, it is at a higher risk of losing momentum, which could mean a change in direction may be ahead. But, keep in mind when studying a market that the daily time level is most prone to higher volatility and price movement while the monthly time level tends to provide a cleaner view of market trends.
Remember, a change in direction can just be a short-term move or brief market correction, it does not necessarily mean it is a true change in longer term trend. This is why studying market behavior consistently, and across multiple time levels is necessary.
In addition to analyzing a price chart, trend lines, stochastic and other technical studies, Socrates Pro and Enterprise users can add Reversal points into their research. Look for clusters of Reversals as they may represent areas of technical support or resistance. In addition, take note of any relatively large gaps in Reversal points exist, as this may highlight where a market could see directional price movement before reaching levels of support or resistance.
Keep in mind, while intra-day price movement is worth studying, the Socrates Platform proprietary computer models more heavily weight closing price (Daily closing, Weekly closing, and so on). Where a market closes is considered a stronger signal of the market's sentiment for that trading period (that day, that week, etc).
NOTE: Bitcoin can be an especially volatile market and doesn't yet have a particularly long trading history (especially when compared to other commodity markets, such as Gold or Silver). This limited data set can make it more challenging to identify patterns, trends and cycles.
Log in to research this and other global financial markets. Go beyond the charts using the Global Market Watch patterns (monthly, quarterly and yearly in particular) and the Indicating Ranges on a monthly closing basis. See how - or if - price movement aligns with what different technical indicators and computer models are picking up on across various time levels (weekly, monthly, etc). This can help shed light on what might be ahead on both a short and long term basis.
Pro and Enterprise members can go deeper with the Reversal System and Timing Arrays, as they look for potential turning points ahead.
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With over 1000 global financial instruments to research, from stocks, commodities, bonds, and more, the Socrates Platform allows members to monitor financial market activity from around the world using price charts, technical studies, custom watchlists, unique indicators, and proprietary computer models (the Reversals, Timing Arrays, Global Market Watch, Indicating Ranges, and the Energy Model).
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