Channel Bound

With most analysts caught on the fence with short-term BTC predictions at the moment , we need some form of confirmation to move ahead

I have been preaching caution for the last few days, advising a "wait and see" approach to crypto trading. I stand by that.

My words of yesterday:

Be very careful, I would wait for positive confirmation before executing any trades. DYOR.

still apply.

Like other analysts, I'm unashamedly hedging my bets at the moment, though still definitely inclined to believe that we are yet to see lower 2018 lows. As much as I would love the bull market to return, I'm still expecting that final plunge. (Though if it failed to occur I wouldn't be upset about it!)

For the moment BTC appears to be in a positive channel as seen below:

Made by Bit Brain with TradingView

This is in stark contrast to it's performance a few days ago, where it first crashed and then went into a fairly steep negative channel as seen below:

Made by Bit Brain with TradingView

I think that for a partial confirmation of the negative trend towards the $3000 region, the price of BTC needs to break out through the bottom of the current channel. I think that it will do so and that once it has, it will step back down the Fib levels to $3200 or lower. For now I am calling the current price movement a bull trap.

On the other hand, if BTC can continue on its current trajectory and break back upwards through the Fib levels to a sustained price of around $5550 or more, especially if it can get above $6100, then I think we may may well have a confirmed price reversal on our hands. Once again I caution that I consider chances of that to be slim at this stage.

In any event, it's good to see the BTC world being excited again. The sideways period had become most tedious! More importantly: the ultra low prices have woken up many dormant traders, the forums are buzzing and volume has escalated radically (I mean to write about that soon if I get the chance). I think we'll be in for a very exciting final month of 2018 in the crypto markets!

Yours in crypto,
Bit Brain

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Published on

by Bit Brain

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