Bitcoin (BTC) Technical Analysis
Like most coins, there is some upward pressure for Bitcoin and what a time to capitalize on. In the past week or so, we have seen the influence of $6,000 our main support line and 2018 lows. Because of these developments, odds of further gains are high and this opens the door for Bitcoin buyers to search for loading opportunities in lower time frames.
From the News
By design, cryptocurrencies are meant to exist on their own without government interventions. To make this a reality, these coins exist digitally in an often regulated environment. Aside the regurgitation of stale crypto news by mainstream media, we have seen how useful they are for struggling economies hit by hyperinflation. Bitcoin for example is in use in Zimbabwe and in Bolivia where their government issued paper monies are worthless.
These encouraging cases give a glimpse of the future where the value of any currency is determined by the community and not by a government entity working in cohorts with rogue politicians. Talking of rules and regulation and the Chilean Court of Appeal has ordered the country’s state bank Banco Estado to reopen the deposit account of OrionX. OrionX is one of Chile’s cryptocurrency exchanges.
#Bitcoin may not be a financial asset or instrument, but its chart sure moves like one. Clear patterns that any chartist will recognise, esp. with a logarithmic Y-axis (linear scale, chart 2, less relevant for such big moves). In fact, recent rise less steep than in Q1 13, Q4 13 pic.twitter.com/tvTOyAGpso
— Geert De Clercq (@gvdeclercq) January 4, 2018
It’s along this value proposition that ADVFN CEO thinks Bitcoin is on the path of hitting $20,000 and later $2 million. According to their bright analysis, Clem Chambers of ADVFN noticed that prices of Bitcoin often expand at 26 percent per time period and this effectively makes Bitcoin a logarithmic asset that moves non-linearly. So, in his projection, within 10 time periods assuming Bitcoin continues to compound at 26 percent, Bitcoin valuation shall reach $2 million.
Bitcoin (BTC) Technical Analysis
The reaction at $6,000 has been impressive and technically this is beneficial for Bitcoin bulls. While bears have been on a rampage for the best parts of Q2, odds are high that there is a recovery boiling up this quarter.
It’s from the charts really. Clearly, there was a rejection of further buys right after week ending July 1 bull pressure confirmation. Then again, last week’s candlestick shape is hinting.
Week ending July 16 had a long lower wick meaning Bitcoin buyers were pushing up higher in lower time frame. However, the major take away was that this was happening right at main support—at $6,000.
So far, Bitcoin prices are up three percent and rejecting further lower lows. Of course, this is overly positive for hawks and my trade suggestion demands patience for risk-on traders until after prices edge past $6,800 and $7,000.
The reasoning is simple: $7,000 is July 2 highs. Besides, it marks the upper limit of an intra-range resistance and bull trigger. However, this doesn’t mean risk off traders should capitalize on this resurgence. They can buy on dips with stops at $6,000 and first targets at $10,000.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.