In a recent post I suggested that Bitcoin could be in trouble in 2018 as a heads and shoulder trading pattern was forming. I finished the post my mentioning that we needed confirmation to be sure.
If you haven't seen this post you can view it here: Is The Dream Run Over For Bitcoin?
Confirmation Is Confirmed
This is the latest updated chart of Bitcoin where you will notice the recent attempt to breach back above the support level back into the rectangle area shown in the chart has failed to materialize.
Even though volumes have been declining as the price of Bitcoin has been under pressure, a lack of volume is not essential to confirm a trading move lower. If we were looking at the price action to move higher than increasing above average volume would be essential for confirmation.
Next Stop - USD -$10,000
If you have been trading Bitcoin and buying the dips in 2017 you were well rewarded for this repeated price action.
However now that we are in 2018 and the head and shoulders price action has been confirmed, our next major support line is around USD $10,000 which is around a 22% drop from the current prices.
I know many people reading this post won't like what i'm writing but an important consideration in trading is to not fall in love with a trade, especially one that had made enormous profits, but rather be objective to what the charts are presenting at any given time.
Thanks for reading this post.
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Disclaimer: This post is for educational purposes only, and all the information contained within this post is not to be considered as advice or a recommendation of any kind. If you require advice or assistance please seek a licensed professional who can provide these services.
Mate! Great to see you on Steemit. Welcome my friend.
It takes a little while to build up momentum and a following around here. Persistence is the key.
Looking forward to future posts.
Hi Jason great to hear from you. Thanks for reconnecting and advice.
Almost touched $10k on bitstamp.
I didnt think it would reach the target in 1 day - Your right Bitcoin reached about $10,100 this morning.