Bitcoin failed yet again at busting through the $10k resistance level, what does that mean going forward?
The other day, bitcoin again made a run at busting $10k and again it was turned back shortly after.
This surge was a little bit different in that it broke well above $10k, getting as high as $10,400, before eventually being rejected all the way back down to the mid $9k's which was where that surge started.
What should we expect going forward?
Well, that all depends on how you interpret a chart...
The bearish scenario...
On the side of the bears, we now have 3-4 rejections at the $10k level, keeping bitcoin mostly going sideways while stocks continue to climb higher each day.
That is relative weakness as bitcoin had been trading along with stocks for much of this coronavirus pandemic.
Also, there is a possible head and shoulder pattern on the weekly chart (or triple top)...
Check it out:
(Source: https://bittrex.com/Market/Index?MarketName=USD-BTC)
This scenario would favor a move down to at least the $7,600 area.
On the bullish side...
On the bullish side there is a quote that I can't help but be reminded of as I mentioned the term "triple top" above.
And that is...
"Like a camera-shy Kardashian, there is no such thing as a triple top"
It was uttered by one of my favorite traders on CNBC's Fast Money, Josh Brown.
Meaning that as the price bumps up against a level that level weakens and price eventually busts through it, often on the 3rd or 4th test.
Which would indicate that the $10k level has been getting weaker and weaker with each test and currently we could just be resting before we make our next attempt at $10k and likely bust through it on our way to the $13k-14k area.
Which was the June 2019 high and represents the next resistance area.
Bearish and Bullish scenario all wrapped up in one...
There is also the possibility of an inverse head and should pattern playing out, which would be bearish in the short term but bullish in the long run...
Something like this:
(Source: https://bittrex.com/Market/Index?MarketName=USD-BTC)
In this instance we would see a similar dip to the one we saw in the bearish scenario that takes prices down around that $7,600 support area, but from there we would see a massive rally.
One that breaks that $10k level and likely never looks back.
I am actually hoping and thinking this one is the most likely scenario to play out.
There is also a CME gap at $7,600 which is yet to be filled and you all know how I feel about CME gaps... they tend to get filled.
So, if we do start to dip, don't get too depressed as it may represent a really good buying opportunity, possibly the last really good buying opportunity before a major bull market rally.
Stay informed my friends.
-Doc
I think we're going to the mewn again!!
With or without more downside first?
We just got rare red dot signal, only happened a few times before massive pumps! We'll have to wait and see, but the BTC stars are beginning to align!!
Its going back to $10k
Bitcoin will keep trying until $10k ceiling is completely broken
10K by Friday!!
That is certainly a possibility and would subscribe to the "triple tops are like camera-shy Kardashians" theory... they simply don't exist.
Bitcoin did not fail, it succeeded in testing the 10K! lol Try Try Again!!
Sure, though it did fail at busting through it and holding, at least for now.
There could be more downside from here before the major run up.
Some traders are looking in a range of $6,500-$8,000, so your bearish case falls into what they are saying.
It seems the halving event was a million years ago and is long forgotten.
Posted Using LeoFinance
Fine, hope there is downside so I can buy more!!
It's one of those things that takes weeks/months before it is actually felt in the price. The new supply/demand economics take some time to be reflected in the price. After the last halving, bitcoin dumped roughly 20% about 3 weeks post halving. I was expecting a move like that this time around as well but thus far it hasn't happened yet.
Could still be in the cards. The 10K level seems tough to overcome although a "triple top" could eliminate that level.
Posted Using LeoFinance
I am still positioned for it to happen, so hopefully it does. :)
i really think the only way is up now
I don't know about everyone else, but I went to buy more HIVE... lol...
Yes I picked up a few more this week, and will add more of it dips below $.24 again.
I try to buy more crypto once a month...