Bitcoin is rebounding from the sell off yesterday, where do we go from here?
Bitcoin saw two rather large dips within the past few days that took prices down around $8,100 at the lows.
Each time it rallied significantly and appears to be in the process of doing that right now as well.
Currently bitcoin is trading for a shade under $9k, but appears to be inching higher.
After 4 red days in a row, bitcoin is due for some green, though I do think it will be short lived...
Perhaps something like a bounce, bounce, roll over:
(Source: https://bittrex.com/Market/Index?MarketName=USD-BTC)
Something like that seems very likely to me...
A dip down to around $7,500 seems likely to me in the coming weeks
Currently the daily chart is overbought on many metrics.
Prices have basically gone straight up since the $3,800 lows fueled mostly by the halving hype and following the US stock market, which has also mostly gone straight up.
However, the halving is now in our rear view mirror and stocks are starting to run into some resistance as well.
For those reasons I think bitcoin will see a decent sized dip.
After the last halving, bitcoin saw roughly a 25% dip roughly 3 weeks after the event. Plus there is a lot of support on the charts around that $7,500 number.
Combine those two things and I think that is a decent spot for the pullback to get to.
(Source: http://www.quickmeme.com/memes/Mad-Karma-with-Jim-Cramer)
Once that dip is out of the way though, I think you want to Buy Buy Buy
In the medium to long term you should be cheering for this dip.
If history repeats, this will be the last major dip before bitcoin starts its roughly year long ascent.
Getting bitcoin at $7k vs. say $10k may not sound like a huge deal, but at $20k that is the difference between a 3x and a 2x return.
The higher bitcoin ultimately goes the bigger than return spread gets...
Anyways, my plan is to hold what I have and add if I see this dip I am expecting.
The coronavirus pandemic may ultimately throw a wrench in past patters, but I will adjust for that when/if it happens.
Stay informed my friends.
-Doc
I tend to agree with your outlook on this Doc. I do not see a straight run up. Too much uncertainty out there and a lot of the run could be due to hype.
Things will settle down over the next few weeks (months) and then the trend can resume.
We shall see how it all plays out.
Posted Using LeoFinance
Yep, my thoughts as well. Dry powder ready and waiting.
I think we might even see dip to around $6400...
Certainly possible. Based on past patterns and the support levels on the chart, I would be surprised to see prices go below $6k though.
I think it pretty much depends on how long it will take monthly EMA40 to go up... In the past the closing price has touched monthly EMA40 a few times...
Yes, it is funny/interesting how price often goes sideways and consolidates for a period just long enough until technical moving averages catch up before going higher again.
The whole point of averaging is that there is always a middle point...
Moving averages discard values that have non-significant effect in the change of equilibrium value.
Different types of moving averages just weigh older and newer value points in different ways, but the basic idea is the same.
Reversion to the mean...
I have never been real fan of the technical terms... Maybe it has a lot to do with me using so many languages every day...
I agree with you about that level, Fibonacci on daily chart would suggest $6300.
I don't usually even try to get an exact number, because most of the times the price won't stop at monthly EMA40, and even if I get one number today, it can be different the day the closing price finally touches the EMA40 curve.
This is absolutely right.
I agree with your opinion, I do not dare to risk seeing the development of BTC in the past week. Hopefully there will be good news and BTC will continue going upwards
I think it will, just might dip first.
Everybody thinks its going to dip. You know what happens when everyone expects something.
I agree.
People are smarter, no one wants to sell.
No dip this time.
Posted Using LeoFinance
It does the opposite... I bought some just in case BTC at $8,400 the other day. Though I do still I think I see lower than that within the next 2 weeks.
have been trying to trading in these zones but not that great definitely some dump or pump will work lets see what plans whales got from here on