The Xbit team rule of not taking a position in uncertain market conditions paid off once again

We closed Xbit’s position manually last night rather than waiting for a confirmation signal from Xbit. Training of Xbit is an ongoing process and we felt after studying the 4-hour chart closely (see below), we were concerned that A might be forming a head-and-shoulders top.

It’s critical to take profit and reconsider your trading position when you see something that just doesn’t make sense.

Are we looking at a correction or reversal?

As I write this, we’re down about 10% from last night’s highs, but I don’t think this signals a reversal of the bull trend.

If you look at the daily chart below, Bitcoin stabilized around the $9,330 level, which corresponds with the base line of the Ichimoku Balance Chart and the 20-day SMMA (smooth moving average). This 20-day SMMA was also a line of support during the adjustment phase in the bull trend last June.

Let’s take a look at the more rarely used three-day chart. Here we also see conversion line support in the Ichimoku Kinko Hyo table.

Looking coldly at the facts, the Xbit Strategy team feels confident the bull trend remains intact.