Bitcoin FUD Over?
Updated
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Brief Overview
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What a bloodbath in the cryptospace these past few days!
This is another example of news blowing information up and exagerrating it.
The primary hypothesis is that this heads back up to test 12000 where we will see exactly what price wants to do from there.
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Technical Analysis
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While someone pointed out that there is a descending triangle forming on the chart, that pattern has already played out! Price has broken beneath the flat bottom at $12,000, managed to stay below, and now the initial reaction should be a retest back up to $12,000. Stops on crypto are a bit tricky during times where FUD (Fear, Uncertainty, Doubt) plagues the market. Since the volatility of this market is so high, stops have to be adjusted.
The usual rule of thumb is that price should not breach the 50% retracement when making a move up, however, in the case of Crypto, I have see the price briefly tap up to the 38.2% retracement and still continue to be bullish.
Ideal entry- Mid 9000s/Right now in mid $10,000s
Stop Loss: $7500
Targets:
(1) $15,000-> Initial resistance area.
(2) $17,000
(3) Breakout above $20,000
MACD:
No sign on the daily of any reversal in price as of yet.
Stoch RSI
Not confirming upward movement yet.
The ideal way to enter is through dollar cost averaging. I would still not be surprised to see price test inside the $9,000 level again, and I think this will present a good buying opportunity.
Brief Overview
__________
What a bloodbath in the cryptospace these past few days!
This is another example of news blowing information up and exagerrating it.
The primary hypothesis is that this heads back up to test 12000 where we will see exactly what price wants to do from there.
__________
Technical Analysis
__________
While someone pointed out that there is a descending triangle forming on the chart, that pattern has already played out! Price has broken beneath the flat bottom at $12,000, managed to stay below, and now the initial reaction should be a retest back up to $12,000. Stops on crypto are a bit tricky during times where FUD (Fear, Uncertainty, Doubt) plagues the market. Since the volatility of this market is so high, stops have to be adjusted.
The usual rule of thumb is that price should not breach the 50% retracement when making a move up, however, in the case of Crypto, I have see the price briefly tap up to the 38.2% retracement and still continue to be bullish.
Ideal entry- Mid 9000s/Right now in mid $10,000s
Stop Loss: $7500
Targets:
(1) $15,000-> Initial resistance area.
(2) $17,000
(3) Breakout above $20,000
MACD:
No sign on the daily of any reversal in price as of yet.
Stoch RSI
Not confirming upward movement yet.
The ideal way to enter is through dollar cost averaging. I would still not be surprised to see price test inside the $9,000 level again, and I think this will present a good buying opportunity.
Note
Despite all the news we are really just in a range. Don't be fooled!
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