Coin Zone Trends: Bitcoin Price Trends Based on Big Data This Week (2017-06-12)

The price of the currency hits a new high and needs to prevent the volume from shrinking
1. Market Trends <br/>Today is June 12, 2017. The current price of Bitcoin is 20,650 yuan. After the opening yesterday, the price of the currency showed a slight upward trend, but soon fell into a sideways pattern. At 21:00 trading time, the bulls once again pushed up the price of the currency and broke through the sideways zone, reaching a historical high of 21,200 yuan. However, when the price of the currency hit a new high, the volume was gradually shrinking.
Looking at the daily chart, the moving average system (5, 10, 20) still shows a bullish arrangement, and the MACD indicator is still running in the strong area on the zero axis, indicating that the lowest support level is constantly rising. However, after the coin price hit a record high, the MACD indicator showed an obvious top divergence, and the trading volume gradually shrank. In addition, both the stochastic indicator and the strength and weakness indicator showed a top divergence phenomenon, and investors should beware of the possibility of a price correction.
Looking at the 4-hour chart, the moving average system still shows a bullish arrangement, but the MACD indicator, stochastic indicator and strength index all show a top divergence phenomenon, and there is a need for adjustment in the price trend of this level of currency. In addition, as shown in the figure, the price of this level of currency is generally in an ascending triangle pattern. If the volume shrinks and breaks through the upper resistance line of the triangle, investors should strengthen risk management.
In general, although some indicators in the above-mentioned level charts send out long signals, the price of the currency is still in a super bull market, and the market also has the possibility of digesting the expected decline brought about by the top divergence phenomenon through horizontal consolidation. In the face of risks, strengthening risk management is the first principle, and subjective speculation on the market should be avoided. It is recommended that long-term investors continue to hold their positions, and short-term investors can lock in profits and wait for opportunities to enter again.
2. Long-Short Index <br/>The figure below shows the daily long-short index.