Bitcoin has run up a ton, but it may have further to go still before a dip
Bitcoin recently blew through $20k and hasn't shown much signs of slowing down yet. It's currently trading over $23k with a high over $24k.
That's about as big of a pullback as we have seen.
So, where do we go from here?
Personally I think we are going to dip at some point, but I don't think it's going to happen yet.
Normally when you break a major resistance level, something like the $20k we just broke, you tend to overshoot it as those using that as a short spot get bulldozed and are forced to cover at higher prices.
You get a couple grand overshoot just like we have already seen.
Now, with prices stalling around $23k-$24k this sounds like a reasonable spot for the price to head back down and test that breakout to see if it was for real.
(Source: https://bittrex.com/Market/Index?MarketName=USD-BTC)
That is probably the odds on play to be honest, but there is something else to keep mind...
Bitcoin didn't just rally straight through $20k starting from $10k.
No, it first got near it and then consolidated for a big just below $20k.
This consolidation was buyers chewing through those who were trying to short or from those simply looking to jump off the train.
Once they were consumed, we busted $20k like it was nothing.
Given how closely we consolidated below $20k, a big part of me thinks we may have more room to run still and the pullback may not go all the way back to $20k when it eventually does correct.
$25k is a big round number that many could see as a psychological point to take profits, or perhaps it goes all the way to $30k first.
Once we do pullback I think we will try to drift back down towards that $20k level, but with so many wanting to buy on a dip, we may not get to it.
Especially with stimulus likely coming at some point.
Fearless forecast?
We go up a little higher, like to $25k and then we start pulling back. The pullback will try to get back down to $20k but won't make it all the way there with something around $21k being the low for the dip. Once that happens you want to buy as the price is going to rocket from there ultimately hitting $100k in mid to late 2021, possibly a lot higher.
Overall I think the dips will be shallower than they were back in 2017 due to more institutions being involved and not as much retail, at least not yet.
Eventually retail will enter and that is also when altcoins really start to party as well.
My guess is that Q1/Spring is going to be great for altcoins and possibly some consolidation for bitcoin.
Either way, buy the dips because higher prices are on the way!
Stay informed my friends.
-Doc
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Hm.. Interesting. You may be right. Can you write a post about HIVE?
HIVE is a bit tougher. I think there will be a major altcoin season in the coming months, the only question is to what extent HIVE will participate. I think HIVE is likely to go higher over the coming months.
I hope you are right @jrcornel :) I believe that in 2021 HIVE will reach $0.50 but let's see..
All the indicators say Bitcoin should go down as it is overbought, but both SMA and EMA statistics say the trend is still up... This might be another case of glitch in the Matrix...
SMA etc are lagging indicators. The medium term trend is up while the short term may be down.
I mostly rely on EMA like I have previously mentioned... But sometimes it's nice to know where the indicators think value of my own cryptocurrency or Bitcoin/Ethereum/Litecoin/Dogecoin should be at...
So far this morning it seems to have dropped a bit and I think today might be a good indication of what we are going to see for the short term. If things pick back up once the markets open at 10:00 you might be right about that 25k point.
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Yea we may be starting that pullback towards $21k. I don't think we get all the way to $20k, though I would like to buy there if we do.
It seems to be fairing a little better now. I am guessing it will bounce around for a couple of days leading up to the Christmas break.
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Are we going down to around 15k before the next run? Every first quarter for btc was some kind of bearish. I'm not confident but if it happens I will buy with all I have in usdt.
I don't think we go below $20k again.