The price reached 10 000 level. We can consider this level as a key one. This level is the perfect for fixing profit from long positions which were opened on the previous major dips.We should be ready to see a price reversal from 10 000 level with further downward movement to a support zone at 8000.00 level. This zone will be good for new long positions opened based on reversal signals. If we look at the indicators now, MACD is goign to support downward movement. RSI confirms price reversal from 10 000 level and do it in the overbought zone. Only DMI shows strong upward movement. Can the price break the resistance level? Sure, because the market is supported by strong fundamental news. New big buyers have power for pushing the price to the new highs. But buying based on a breakout above 10 000 level, it's looks like a stupid idea. We'll have a chance to get a bullish trap and stay with long positions opened on the top. That's why buying on the nearest dip, it will be our new target. And what do you think avout this market? Please, share your thoughts in comments.
What cannot be put in the charts is the amount of public "hysteria" about bitcoin that is spreading - when even friends who have no clue what bitcoin really is want to buy just because they heard it is going up. Couple this with the alternative investment vehicle of people - banks which offer below 0.05% annual interest rates and time deposits which maximize at 3% annually for large amounts.
I think that the amount of new money coming in will prevent bitcoin from going below 10k less 5% going forward.... its the new floor IMHO.
The people wary about 10k are the ones who have been in the crypto space for a few months now - which is probably so small compared to the number of new investors who want to buy in.
piedad
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I have one such friend who said in Feb he will buy bitcoin no matter how much it is as an investment - no matter what I try to say to dissuade him. Its the fact that bitcoin is a limited resource that makes him think like that.
wpgmantrader
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@piedad, SO,so true. Those new to the market only see a chart that's going up, UP, UPPP and want a piece of that action. Only those that have been around for a while (and look to build their stack) worry about (and are familiar with) corrections. Even those that take profits (anticipating a pullback) have come to experience that they end up stuck on the outside and either are left at the station or end up paying a higher fare to get back on the packed train that they had a prime seat on previously. There is NO rhyme or reason behind BTC.
dwk8081
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IF there is a break out above 10K, at what point would you call 10K a support - and not a resistance - level?
isaeed
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@DLavrov since litecoin and Ethereum seems to go up and down with bitcoin, this analysis seems to contradict with your latest anlysis on litecoin and Ethereum indicating a bullish divergence for both. So how come we should wait for 8000 support level for BTC and at the same time have a solid bullish divergence for ETH and LTC? Given that they generally follow BTC. Don’t get me wrong i still like your TA very much.
Velichkov
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Today for first time in my life I invested in Bitcoin (or anything like this), I bought 0.5 at 10800$. And then I found tradingview live monitoring .. and then I was stoned. And now I read this, I think there is long way ahead of me to learn. Anyways I like the feeling and it is supposed to be long term investment so I go to sleep.
davethewaver
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@Velichkov, Good! Don't sell on a panic. I've done it a few times and have always regretted it.
alejandroscotti
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@Velichkov, no worries brother! don't sell now. Hold on to them for at least a few weeks. No matter what negative news you read, stay in, Bitcoin is not staying low for long and the next target will be $15000 or $20000... welcome to the crypto madness!
tartankiwi
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@Velichkov, We all make the same mistake at the start. But it will come back, and you'll learn the valuable lesson that's kinda counter intuitive to noobs..... Buy Low, Sell High!!