The question is, where next for Bitcoin?
This is something I’ve been asked regularly over the past year, unfortunately it’s not an easy question to answer. No one has a crystal ball, it’s a matter of waiting for either a support or resistance level to break. When these levels are broken we tend to see large moves in Forex, Commodities as well as Crypto currencies. What tends to happen at support levels is we see bulls trying to push the price higher whilst the bears are trying to sell the break out and push the price lower triggering stop losses along the way creating further downside.
One of the major issues surrounding Crypto currencies is the amount of hype we see on social media, you only ever see people claiming Ripple, Bitcoin, Ethereum etc are going to rise to moon! What makes you think they know anymore than you? they don’t! It’s a financial market and should be treated like any other Forex market! Do your own analysis and trade the market in BOTH directions. Learn more about technical analysis in our 7 step trading course.
As a lot of you know I’ve been sitting patiently waiting for a break below the low’s from June 2018 (see the chart below) and finally it’s happened! Patience is key in trading, the only way to be successful in the long run. I’ve placed a sell order just below the low of the breakout candle (i never take the market price). We may see the market may come up and retest the previous support level before making a new resistance level. You can see how a break of the support zone also coincides with a breakout of our bollinger set up. I feel that we could head down to $3500 before possibly consolidating, this is where the next weekly demand zone is.
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