Bitcoin About To Breach Its Current Support Line
Bitcoin Roller Coaster Ride Continues
Bitcoin has been on a roller coaster over the last week. After reaching a recent low around $9,100, bitcoin shot backed up to around $14k as investors piled in thinking this was a seasonal fall with bigger gains ahead.
That was last week and with only a few trading days into this week Bitcoin has fallen back down to recent lows just above $10k.
Based on the current price as seen in the chart Bitcoin is in danger of breaking its current support line of around $10,300 with the price currently above $10,100 level.
If the support level is breached on this daily candle the next leg down for support is around $8,000 - $8,100 level as shown in the chart.
Like I have been saying in my recent posts for Bitcoin, now that you can short Bitcoin via the futures market it has played havoc on Bitcoin's run to new highs. To view my previous post on Bitcoin price action and new targets Click Here
Based on the latest increase in futures positioning for commercial traders for Bitcoin, the downtrend looks set to continued for much longer.
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Expect a drop below $8000.00 (possibly $6000)
There is no real support until there.
Thanks for your reply, its quite possible for a breach below $8k to $6k. That's just the first line of defense. The market of longs has not capitulated so the volatility can spike even higher than the usual moves for Bitcoin.
You are absolutely correct.
I do expect a nice upward attempt at $6,000 as most bubbles retrace 100%, and this is where it when hyperbolic.
Ok so when it reaches $6k you think it will have a massive retrace to? Does this leg up end the downtrend in your opinion?
I'm expecting a reversal for BTC at that time and we should head up again. There is of course no way to know this for sure. I am basing it on the complete capitulation of the average investor, selling at the end of the down cycle.
BTC shorts on the CME may also be pulled and converted to long positions at this same point, whipping us up pretty fast.
Mostly I believe the better alt. coins will explode and continue upward once they can detach a bit from BTC.
I believe virtual currencies are here to stay and we will see 100x returns in the next year or so.
Makes sense with the capitulation with the avg investor. Not sure what number that is for the pain to hit. A print around $5 -6K would mean a 75% from $20k.
Yes with the shorts short covering their profits would give a massive spike very true. Then they may go long or re enter short postions for the next leg down.
With the alt coins, I agree and believe eventually they will divert from BTC swings as many have superior technology to BTC and some have actual intrinsic value behind them.
Perhaps though like the 2000 tech boom and crash many Altcoins will eventually fade in the night and leave a handful of strong coins like the companies that make it through the wreckage. Ie Amazon, Facebook, Oracle etc with the Pets.com of the world to go.
We said!