Technical Analysis of Bitcoin

The price of Bitcoin is again below $4 000 and this is certainly not a good sign for the cryptocurrency market. In only several hours the price of this cryptocurrency has weakened more than 10% and for now, everything indicates that the price could fall even more. The price of Bitcoin has been in the “bearish” phase since January 2018 but we can not say that the lowest price in December is the end of this phase. This is a highly speculative cryptocurrency and still very risky, I also think that there are lots of other cryptocurrencies with bigger potential and with less risk. Investors who decided to invest in the Bitcoin when the trading was at its tiny fraction when compared to the highest price of this cryptocurrency, made the highest profit you could ever think of. When we look at the 1-year chart we can see that Bitcoin is moving in “downtrend”.  Short term support and resistance levels are $3 500 and $4 000 – If the Bitcoin jumps above $5 000 that would be a “BUY” signal and the open way to $6 000. If the Bitcoin jumps above  $10 000 that could be a strong signal of the trend reversal and the open way to $12 000. On the other side, if the BTC falls below $3 500 that will be a strong signal “SELL” signal and the next target could be around $3 000 or even $2 500.

Advice: Bitcoin is the first cryptocurrency to have existed and receive wide acceptance, it enjoys the support of both developers and users communities. The price of Bitcoin is very unstable but it is true that the price could fall even more. This is a highly speculative cryptocurrency and still very risky, I also think that there are lots of other cryptocurrencies with bigger potential and with less risk. As for the technical picture, the Bitcoin remains in bearish phase but if the price advances above $6 000, short-term traders can enter the position with the stop loss at $5 800 and take profit at $6 800 or even $7 000.
 

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