Bitcoin made an impressive come back from the Valley of Death. It is an interesting speculative instrument that keeps the market amazed. It ran from the 3K's level to 13K's then went to take a break above the 9K's where an important Support/Resistance line is located. It is still above the weekly moving average, which works as a support and after the consolidation it is going through in the last 4 weeks, it could finally proof it can be a solid step to climb to the next leg. This is when things become interesting. I estimate a similar leg like the one that brought it back to the 9K's, and if this is the case, it could go as high as the 18K's.
The technicals in the Weekly time frame show a loss of momentum, which is expected, this made a very fast run to 13K's and the market is taking profits. It is waiting for confirmation for a support at this level, so far the momentum keeps on the positive side. The stochastics are still above 50 and this can be counted as the first leg. I am inclined to call it a "Buy the dip" scenario.
Important levels to watch: 10,000 where half of the run in December 2017 created a support level, the 12.5K's level where there's an important resistance and the 18K's where the bulls took profit by the end of 2017. If eventually these two Resistance levels are breached then the sky is the limit. This market could get crazy pretty soon and we could see a lot of frenzy that could take bitcoin above 20K.
The warning here is as usual. If things don't go as forecasted, don't fight the tape, the tape is always right. Play safely.
The technicals in the Weekly time frame show a loss of momentum, which is expected, this made a very fast run to 13K's and the market is taking profits. It is waiting for confirmation for a support at this level, so far the momentum keeps on the positive side. The stochastics are still above 50 and this can be counted as the first leg. I am inclined to call it a "Buy the dip" scenario.
Important levels to watch: 10,000 where half of the run in December 2017 created a support level, the 12.5K's level where there's an important resistance and the 18K's where the bulls took profit by the end of 2017. If eventually these two Resistance levels are breached then the sky is the limit. This market could get crazy pretty soon and we could see a lot of frenzy that could take bitcoin above 20K.
The warning here is as usual. If things don't go as forecasted, don't fight the tape, the tape is always right. Play safely.