CRYPTO NEWS : Not out of the Woods 28 03 2018

Not out of the Woods

Yesterday, my post touched upon a few different strategies to hedge portfolios against a potential downturn in the price of Bitcoin. Based on historical data, Bitcoin’s price drives the profitability of the rest of the digital currency sphere. When Bitcoin fails to hold stability or gradually rise with the market, alternative digital currencies have faced difficulty sustaining positive price movements. This is part of the reason why we must reiterate the importance of Bitcoin’s current price levels.

As I discussed yesterday, Bitcoin is hovering above two very crucial support levels. One being the logarithmic one year uptrend; the other being the 200 day Exponential Moving Average. An Exponential Moving Average is similar to a standard moving average, except it gives for weight to the latest data. The 200 day Exponential Moving Average is an extremely important indicator in the eyes of technical traders, as it provides a market pulse as to whether the price in recent times has remained bullish or bearish in comparison to the past 150 or so days.

These two massive support levels are coinciding with the $7500-$7700 range. As of last night, we have seen BTC bounce from the $7700 level back now to above $8000. Although we do like to see this bounce, the volume and and percentage increase in price are not at levels that make us secure in calling this a definitive move off the support regions. For that reason, I am proceeding and hope you all are too, with caution. If these support levels do not hold, Bitcoin’s price will most likely undergo a serious sell off with the rest of the digital currency market.

The key is to watch price action in the $7500-$7700 level and see if any sort of fresh volume wills the price out of this tumultuous zone!

have a nice day