Bitcoin Analysis - What Will Happen On Thursday?

in bitcoin •  7 years ago 

Bitcoin fell again today, this time about 7% but it does look like we have found some support in this area. Here is the daily chart:

FireShot Capture 565 - BTCUSD_ 16632.81 ▲+1.01% — Unn_ - https___www.tradingview.com_chart_AxIWekrr_.png

Comment: Whats positive here is that we closed at the support level around 16700 and we also touched the bollinger band median and the 20 day moving average. All of these things are potentially positive at this stage. Now, what is going to happen on thursday then? Well, lets have a look at the hourly chart, because I do have a pattern to show you there. Here it is:

FireShot Capture 566 - BTCUSD_ 16616.46 ▲+0.91% — Unn_ - https___www.tradingview.com_chart_AxIWekrr_.png

Comment: Here we can see that we have formed a head and shoulder reversal pattern and that could indicate that we will start moving back up again. We have broken out to the upside on the hourly chart, but that is not a super strong indicator.

Now, what if Bitcoin will continue to fall even more, what support level are we looking at then?

If you look at the daily chart again you can see that there is a ascending trendline and at this time that is crossing the area of 13600 so that could happen next.

On the other hand, if we are going to the upside, the old ATH is the next target which is around 19800 here on Bitstamp.

Happy trading!

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Bitcoin is being a real pooper lately, with all its negative days.
But, it just means this next leg up will be awfully rapid.
I don't have the emotions needed to be a trader yet.

Trading crypto is extremely volatile, but it is an amazing thing for a trader like me. Having that said, I only trade for 1% of my portfolio at the moment in order to spread the risks.

It would not surprise me if Bitcoin will close the year around 25k or higher...

It's really easy to feel nervous when bitcoin takes a tumble, but to put it in perspective, it has gained so much so quickly recently that corrections should be expected. This week's tumble only took it down to where it was about two weeks earlier, still having made a 100% gain over the last month, so not really bad providing you got in before that. I expect we'll get a lot more of this kind of volatility as additional capital is pumped into cryptos. There will be plenty of trading between BTC and the alts with people trying to buy and sell on the peaks and troughs and make some gains. I think the market will continue to increase overall though, so holding through the dips is still a good strategy for now.