Without a doubt global markets are facing a period of uncertainty after reaching "New paradigms," and the American stock markets looking to be concluding "The longest bull-run in history." Upon learning this while watching traditional stock market reporting I immediately sold off all my stocks. Could I have missed out on some profit, could I be wrong in my conclusion that this was a giant red flag to exit the stock market and find safe haven, and more opportunities for profit in cryptocurrency? Sure, but is the risk/reward in my favor at the moment, yes.
Onto the idea of what is Bitcoin doing and where is it going? Counter to my previous idea that Bitcoin would break the $2800 support and collapse to new lows finally finding capitulation and the end of the bear market with a period of consolidation before moving back to gains BTC instead found support and bounced rather well off the $3100 line. Since then the bulls and bears have been in a detente of sorts as neither side has been able to commit to pushing the issue further. What does this mean? Are the bears finally exhausted? Have the bulls finally been pushed to the point that they say "No more!" and fight back? No, I don't believe it is as simple as that.
With the bounce off of $3100 and following sideways trend many analysts have come to the conclusion that Bitcoin has found a bottom and that the bulls are consolidating for a push higher as traditional investors seek relief from a retreating stock market into other lucrative areas to continue their gains. In the short-term there is a high probability of this being the course of action. However, it is my belief that this is the great deception of the bears that the bulls are falling prey to. The bears know that the bulls need some relief and that a swing up would ignite their fervor and bring fresh funds into the marketplace. This will also bring many leveraged positions into the market for gains as the stock markets continue their route in correction and crypto is signalled by the media and social media icons that we have indeed found bottom and that a new bull-market is here. This is where we may be fooled.
For all intensive purposes the resistance for Bitcoin between $3400 and $5500 is rather nominal. Throughout 2018 the $6000 level acted as a bullwark for the bears as they continuously smashed a battering ram against this support level. Eventually, this support fell through, as it quite honestly, had no choice but to relent. This brings the most important point of this analysis to the forefront. This $6000 yearly support of 2018 is now going to be one of the most difficult resistance levels that Bitcoin has had to face and it is at this juncture that the fate of the market will be decided. I am expecting that the bulls will indeed push as far as $6k and perhaps slightly above this price level. At which point the trap the bears have set will snare and trap the longs above this critical price point. As the price is pushed back from the resistance the longs will be forced to liquidate causing a cascading effect and spiral downwards for Bitcoin to test new lows not seen in over a year.
In conclusion - there stands great opportunity to make money in longs over the coming weeks or even a few months, but do not be deceived and take risky trades as Bitcoin approaches this critical resistance as a turnaround from this price level is extraordinarily likely.
Onto the idea of what is Bitcoin doing and where is it going? Counter to my previous idea that Bitcoin would break the $2800 support and collapse to new lows finally finding capitulation and the end of the bear market with a period of consolidation before moving back to gains BTC instead found support and bounced rather well off the $3100 line. Since then the bulls and bears have been in a detente of sorts as neither side has been able to commit to pushing the issue further. What does this mean? Are the bears finally exhausted? Have the bulls finally been pushed to the point that they say "No more!" and fight back? No, I don't believe it is as simple as that.
With the bounce off of $3100 and following sideways trend many analysts have come to the conclusion that Bitcoin has found a bottom and that the bulls are consolidating for a push higher as traditional investors seek relief from a retreating stock market into other lucrative areas to continue their gains. In the short-term there is a high probability of this being the course of action. However, it is my belief that this is the great deception of the bears that the bulls are falling prey to. The bears know that the bulls need some relief and that a swing up would ignite their fervor and bring fresh funds into the marketplace. This will also bring many leveraged positions into the market for gains as the stock markets continue their route in correction and crypto is signalled by the media and social media icons that we have indeed found bottom and that a new bull-market is here. This is where we may be fooled.
For all intensive purposes the resistance for Bitcoin between $3400 and $5500 is rather nominal. Throughout 2018 the $6000 level acted as a bullwark for the bears as they continuously smashed a battering ram against this support level. Eventually, this support fell through, as it quite honestly, had no choice but to relent. This brings the most important point of this analysis to the forefront. This $6000 yearly support of 2018 is now going to be one of the most difficult resistance levels that Bitcoin has had to face and it is at this juncture that the fate of the market will be decided. I am expecting that the bulls will indeed push as far as $6k and perhaps slightly above this price level. At which point the trap the bears have set will snare and trap the longs above this critical price point. As the price is pushed back from the resistance the longs will be forced to liquidate causing a cascading effect and spiral downwards for Bitcoin to test new lows not seen in over a year.
In conclusion - there stands great opportunity to make money in longs over the coming weeks or even a few months, but do not be deceived and take risky trades as Bitcoin approaches this critical resistance as a turnaround from this price level is extraordinarily likely.