Below is the chart of IBIT, the BlackRock iShares ETF for Bitcoin.
The bottom four studies are a various form of indicators related to answering the question – Are larger share trades on the Buy-side of the trade or the Sell-side of the trade.
For clarity purposes the four indicators are 1) OBV – On Balance Volume, 2) Chaikin Money Flow (CMF), 3) Balance of Power (BOP) and 4) TSV – Time Segmented Volume.
How do we read these four indicators?
I: Is the trend rising or falling? – Three of the four are rising indicating the larger trades are buying. The fourth indictator, OBV – On Balance Volume, is close to going on a buy with a crossover of its trailing moving average.
II: The second way of reading these indicators, is when we look backwards at comps to the most recent high or low price of comparison. For today we want to look back to late November, the last time we were at this price level, were the indicatotrs higher of lower than last November? Again, three of the four are higher with the fourth, OBV – On Balance Volume, very close to turning positive above its trailing moving average.
About the other two indicators: MACD and Williams %R are ocillators and are indicators of short-term over-bought or over-sold conditions. One does not use these other than for short-term entry or selling signals and if short-term trading, only after they reverse above or below their respective over-sold level or over-bought readings.
The two occilators are both over-sold but not yet reversing. Our time-line is longer-term, so for our purposes, just knowing they are over sold, creates a Dollar-Cost-Averaging moment. We are in the accumulation mode at this time. If we were in and out trading, we’d wait for these indicators to show a reversal from their current position. MACD is the less sensitve of the two and is showing that it is higher than our late November price comp – so a positive signal for buying as well.
For our acculation purposes, our conclusion is that we in the area of a bottom and are adding to our investments related to Bitcoin, Crypto & Blockchain. Bitcoin is the Leader of the Pack, and so what happens to Bitcoin, happens to the industry.
Good Luck. I’m available for consultation. Text @ +1 Seven 1 five four 5 nine four five three 0 with name date lcation to arrainge a short intro and free contact to see if I can be of help.
Interesting (positive) Interview for longer term holders of Bitcoin specifically and Crypto in general:
I: Why Bitcoin Will Hit $6.5 Million (and is better than Gold).
II: Death of the Dollar? Central Banks MUST Buy Bitcoin!
LOTM Comment: we will not see the death of the dollar because demand for the USD is very strong outside the USA. USD linked Stable coins will allow the USD access to this demand and once it happens our interest rates will drop. BUT, the USD will be used for transaction while Gold and Bitcoin will be used as Stores of Value when not making transactions. It is a new way of thinking but it will happen and soon. Within six months to three years we will see a massive increase of stable coins.
OFF CRYPTO TOPIC:
- One Dividend Paying stock we invite you to explore further is
CHICAGO ATLANTIC BDC INC (LIEN*) $10.65 with a $0.34 quarterly distribution.
Do not buy without the knowing the Company better than just seeing its name here.
This is a not a traditional company, so “Know What You Own.”
- Equinox Gold (EQX*) Love the company/stock at these prices (under $15.00). Debt was at $1.5 billion at last Quarter’s end. They have paid off all but $150 million of debt this quarter. Free Cash Flow is going to EXPLODE! They are projecting $100 million a month in Free Cash Flow with gold priced at $3,000. We all know where gold is now.
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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