Bitcoin's parabolic move seems to be coming to an end, looks like we are going to have some sideways consolidation and range trading, but so far there are no signals of strong retraces or a crash to $1,000 as some predict.
Monday's are bloody, the Stock market is crashing... Yet, Bitcoin remains strong.
- Trading above EMA10 (not even our first support has been broken). Note: If this level breaks ($8456 at this time) we put the warnings hat on but remain . Next strong support would be EMA50 sitting at $7017, but first EMA10 needs to break and so far it has been holding strong.
- The is now looking while the is doing good.
- What we see here is the potential for Bitcoin to drop, but it hasn't. So if we see Bitcoin consolidating and only dropping a few hundreds of dollars, we can expect the uptrend to resume in a weeks time. If Bitcoin drops, we focus on the strength of the drop to consider the next move and how far it can go.
- Another important point is the altcoins market. Remember a few weeks ago we mentioned that the altcoins would move when Bitcoin drops? It did and they grew a lot, this was the signal that told us that we entered the bull cycle... Alts growing when Bitcoin drops (money flowing from Bitcoin to alts rather than leaving the market).
Now, when we see this new recent drop, the altcoins remained strong. If you take a look at Bittrex homepage, you can see most small altcoins with huge numbers, numbers that we only see when things are moving up and .
Binance is a bit slower right now, but it always takes longer to take off and the numbers are still good compared to past history.
The altcoins remaining this strong and Bitcoin holding so well, are signals that tell us that people are not willing to sell, at least not now.
- To the upside, we keep the same targets and resistance levels as before.
What's your take on what will happen next?
Share in the comments section below...
If you like reading about Bitcoin & The Stock Market, check this chart that we just post:
Thanks again my dear Soul...
Thanks a lot for the support.
Litecoin (LTCM19) Trade for 140%+ ROE (BitMEX)
I am offering a 7 Day chart share of ETHUSD and XBTUSD Available to you and anyone that is interested. https://www.tradingview.com/chart/CmkNVSPl/
My range is sitting between $6,000 and $7,100.
Thanks a lot for sharing.