Hi guys!
It seems like bitcoin is going to consolidate for the next few days.
Here are my thoughts on bitcoin for today.
BTC - Daily Chart
Tools used: Fib Retracement and Smoothen Moving Average
Bitcoin failed to breakthrough yesterday and closed around $7,600. And judging from the candle, bitcoin might be consolidating for the next few days.
Nevertheless, these are 2 prices to lookout for:
- $8,000 is a very important price as this was the price prior to the parabolic move/bull run around the end of November 2017. Note that it took about 2 weeks for bitcoin to breakthrough $8,000 on November 2017.
- $9,000 is the upper resistance on the massive descending triangle. This was the resistance that bitcoin failed to breakthrough and led to the last breakdown**.
BTC - Daily Chart
Tools used: Trend-Based Fib Extension
This might be the probable price area if bitcoin consolidates for the next few days. Note that the crossover of $8,000 price will happen on 14/15 February 2018.
Conclusion
As always, I would wait for the stronger confirmation while watching closely to those prices around the resistance and SMMA (200). But I doubt bitcoin might go back to $6,000 price soon.
And I won't be touching my alt bags anytime soon. Until I get a strong confirmation on the trend/reversal trend to the downside.
FYI: SMMA(200) or smoothen moving average is a great indicator to find an undervalued price on both stock and cryptocurrency chart. Found this while browsing youtube yesterday. This was the reason for the price spike from $6,000 to $9,000 in a matter of 1 hour.
Disclaimer
You know the drill guys. This is just opinion and not a financial advise. Do you own research and decide your own trades. Cheers!
Just another bull trap. BTC goes down, then goes back up by 1k and reverses... there's a ton of consolidation around news of China and US. This will probably continue for the next 2-3 months unless the news out of either country changes.
I'm afraid so to. All I hear on the social media people are expecting bitcoin to crash to $4,000 then magically shoot up to $50,000. But I agree with your opinion, we might consolidate for months before any big moves.
Gotta wait for all the FUD to dissipate before any major price spikes can happen I guess.
I don't think FUD is going to stop anytime soon though. Until they see 3 digit bitcoin price. I mean their headlines really sell. Imagine how many clicks they get shilling and creating FUD?
But the market is the market, all we can do is look for signals and confirmations.
Yeah, good point. You can never predict the market after all.