Coin Zone Trends: Bitcoin Price Trends Based on Big Data This Week (2017-08-25)

Long-term light position intervention after breaking through resistance
1. Market Trends <br/>Today is August 25, 2017. The current price of Bitcoin is 28,900 yuan. Last night, the price of Bitcoin broke through the resistance level of 28,300 that was emphasized in the analysis a few days ago, and attacked 30,000 again. However, since some potential risks have not been eliminated, short-term heavy positions are still not allowed.
Looking at the 2-hour chart, the bottom and top of the rebound have been rising successively since August 22, which is the strongest signal that the original trend will continue. As can be seen from the chart, after breaking through the resistance level, the bulls began to attack the 30,000 mark. It is expected that the price of Bitcoin will touch 30,000 again in the short term.
But why can't we still invest heavily? This is because the investment process is essentially a process of managing risks. In the long run, the management of potential risks determines the final return. So what are the main factors that prevent heavy investment?
First, the volume of the breakthrough resistance is not satisfactory. Although there are often cases of continuous rise after a slight breakthrough of the resistance in history, it is more often a false breakthrough. Secondly, we need to be wary of the emergence of a double top pattern on the daily chart. To eliminate this potential factor, the price needs to break through the historical high that is within reach.
Therefore, it is recommended to lighten the positions temporarily. Investors who are already present should continue to hold their positions, and mid-term investors can still let their profits run.
From the 4-hour chart, the price of Ethereum is still in a rebound channel, but it has entered a shrinking and rising pattern since the downward adjustment on August 21. Aggressive investors can enter the market appropriately, but they need to pay attention to stop loss, while conservative investors continue to wait for large-scale upward attack to reduce risks.
2. Price trend index "Bitcoin price trend index" is an indicator similar to the "long and 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.