Bitcoin - Correction Phase Shakes Out Traders
Please go and read my other Bitcoin articles to get a better view of this analysis and feel free to engage the post
Bitcoin has corrected at press time to just above $10,000 USD, with a current low of around $9850 USD, is this the correction we have been waiting for? Is this time to buy?
Well, maybe.
This correction has brought us back to the 9 ema on the weekly chart, which historically acted as major support during the 2017 bull run. HOWEVER, during that same bull market, Bitcoin also corrected to the 20 ma on a weekly chart with fair regularity.
We could certainly bounce from here, and near term i believe it is quite likely that we do see a bounce from here, my best estimate would be to around the $11,000 USD mark, but we could very well just bob along whilst the market digests this move. Remember that healthy markets correct, dangerous markets bubble.
The key, must hold support for Bitcoin is the $8,000 mark, which is the 20 ma on a weekly chart, this first line of support is the 9 ema, which we currently are.
The other key point is the monthly 9 ema, which bitcoin respected throughout the entire 2017 run, that is the line investors should be watching, a close below that on the monthly is VERY bearish for Bitcoin. Although this, in my opinion, is quite unlikely.
At press time, my recommendation would be to position yourself with a fractional long position, a smaller than normal position, until we get confirmation of a close above the 20 daily ma. That way you have latitude to pyramid in should Bitcoin begin to climb, but your downside is also minimal.
Bitcoin has corrected at press time to just above $10,000 USD, with a current low of around $9850 USD, is this the correction we have been waiting for? Is this time to buy?
Well, maybe.
This correction has brought us back to the 9 ema on the weekly chart, which historically acted as major support during the 2017 bull run. HOWEVER, during that same bull market, Bitcoin also corrected to the 20 ma on a weekly chart with fair regularity.
We could certainly bounce from here, and near term i believe it is quite likely that we do see a bounce from here, my best estimate would be to around the $11,000 USD mark, but we could very well just bob along whilst the market digests this move. Remember that healthy markets correct, dangerous markets bubble.
The key, must hold support for Bitcoin is the $8,000 mark, which is the 20 ma on a weekly chart, this first line of support is the 9 ema, which we currently are.
The other key point is the monthly 9 ema, which bitcoin respected throughout the entire 2017 run, that is the line investors should be watching, a close below that on the monthly is VERY bearish for Bitcoin. Although this, in my opinion, is quite unlikely.
At press time, my recommendation would be to position yourself with a fractional long position, a smaller than normal position, until we get confirmation of a close above the 20 daily ma. That way you have latitude to pyramid in should Bitcoin begin to climb, but your downside is also minimal.
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