What the hell is going on with bitcoin? Bitcoin is going to crash. That is what the media is saying. Well, I'm saying this, bitcoin is going to be bitcoin. It will fall and it will rise. The difference between the two is that when it falls, it falls to retrace and when it rises, it rises, it moons.
Back in August, I said that in the long term, bitcoin will fall until December and it will go down to as far as $4500usd. Well it fell beyond that. I was being bullish. I am still hoping that this is the end of the fall but unlikely.
Back in August I mention that $3300 will be the absolue bottom. If we look at the weekly chart, it will fall closer to the $3000usd mark. Now if we look at the monthly chart, there is no support from here on out and it will fall down to the $1200usd mark. Yes, you heard that right, $1200usd. I am just looking at it from the long term perspective. So it depends on how you look at it. I am a long term investor and I prefer the monthly chart. When we look at the bollinger band on the monthly, it has not yet reached the lower bb line. It has however went below the middle bb line and that tells us that it will fall further down. Just how far, we don't know. On the weekly chart, the bitcoin has started a freefall on the bb line. That freefall will end when it reaches near the lower bb line on the monthy chart. The problem is that is we don't know where that bottom bb line is at because of the prabolic move that bitcoin had at the end of last year to the beginning of this year. We can only guess at this point.
On the weekly chart, we see a bullish divergence (lower low, higher low). This is a short term rally if it does become one. As for me, I feel this is a bear trap and will stay away from it for the time being. It is not a strong enough indicator.
The red lines is the monthly support. The blue lines is the weekly support. The green is the divergence.
Remember as always, this is not a signal to buy, sell or trade. DYOR.
Back in August, I said that in the long term, bitcoin will fall until December and it will go down to as far as $4500usd. Well it fell beyond that. I was being bullish. I am still hoping that this is the end of the fall but unlikely.
Back in August I mention that $3300 will be the absolue bottom. If we look at the weekly chart, it will fall closer to the $3000usd mark. Now if we look at the monthly chart, there is no support from here on out and it will fall down to the $1200usd mark. Yes, you heard that right, $1200usd. I am just looking at it from the long term perspective. So it depends on how you look at it. I am a long term investor and I prefer the monthly chart. When we look at the bollinger band on the monthly, it has not yet reached the lower bb line. It has however went below the middle bb line and that tells us that it will fall further down. Just how far, we don't know. On the weekly chart, the bitcoin has started a freefall on the bb line. That freefall will end when it reaches near the lower bb line on the monthy chart. The problem is that is we don't know where that bottom bb line is at because of the prabolic move that bitcoin had at the end of last year to the beginning of this year. We can only guess at this point.
On the weekly chart, we see a bullish divergence (lower low, higher low). This is a short term rally if it does become one. As for me, I feel this is a bear trap and will stay away from it for the time being. It is not a strong enough indicator.
The red lines is the monthly support. The blue lines is the weekly support. The green is the divergence.
Remember as always, this is not a signal to buy, sell or trade. DYOR.