This is not an actual trade, so I left the idea neutral so people wouldn't think I was advocating this. I just want to be able to look back and see if I was right.
Right now we have a lot of people hoping and anticipating a possible long-term uptrend in bitcoin, seeing that we are near a potential break-out zone. However, there is another possibility here, which is that the pattern from June-July last year could be playing out again.
This pattern consists of wild price fluctuations within range of the local top. Eventually, the volume dies off and the market stagnates before panicking down to the last major support level and eventually resuming the downtrend. Trying to make sense of the market variations within this range can be a challenging task, but it could still break either way, so I would advocate waiting a while longer before trying to decide which way this is going to go. As always, watch volume for confirmation of any trends. Being that the market is in a downtrend, it is still safer to go with the trend than against it, so this could turn into a good short trade if it plays out.
Right now we have a lot of people hoping and anticipating a possible long-term uptrend in bitcoin, seeing that we are near a potential break-out zone. However, there is another possibility here, which is that the pattern from June-July last year could be playing out again.
This pattern consists of wild price fluctuations within range of the local top. Eventually, the volume dies off and the market stagnates before panicking down to the last major support level and eventually resuming the downtrend. Trying to make sense of the market variations within this range can be a challenging task, but it could still break either way, so I would advocate waiting a while longer before trying to decide which way this is going to go. As always, watch volume for confirmation of any trends. Being that the market is in a downtrend, it is still safer to go with the trend than against it, so this could turn into a good short trade if it plays out.
