Bitcoin Market: Bitcoin to $7200?
Hi traders, let's talk about Bitcoin.
Bitcoin.
- As we predicted a couple days ago, Bitcoin is continuing its break down inside a massive bearish descending triangle:
... due to a lack of new liquidity in the market as shown in the continuously decreasing weekly volume:
- On the smaller time frame, we just broke the immediate trend-line:
... which prompts me to believe we'll soon be exiting the current price node to go retest the previous price node ($7200/$6400)
- If we get there and provided there is no major influx of new money in the space, my guess is that previous support won't hold and we're going to break down below this descending triangle:
... and zip right down to this very thin value node ($5700/$5500) where we are going to find temporary support before we break below down to the much stronger value node at around $4500:
... notice the huge volume wells between each nodes, these zones of low volume won't offer any resistance for the price because there is no auction happening there (i.e. nobody is interested in buying at these prices):
If the scenario I just described plays out, I believe $4500 is where we're going to find very strong price support and where Bitcoin is going to hit a period of accumulation. Leading up to this I predict that most altcoins are going to take a huge hit that's why I have locked in profit on my ZCash trade from last month in order to prepare for the next market cycle.
On that note, I was quite wrong to assume that Consensus would allow the market to bounce to $9300 before we would break down lower. It now seems to me that the hype around Consensus is not necessarily going to produce this huge influx of new money that is needed to support current price valuations in the market.
Finally, I am also keeping an eye on EOS because it could make for a very descent quick bounce play if it does break down to $8-$9 USD and also because it has a catalyst event with the launch of its platform which could prompt the market to pump it once last time before the tokens are locked away.
Trade safe!
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Another red day on the charts as price fell through the $8,330 level.. I believe price will continue to fall over the course of the week and test the $7,870 region!
Hi Steve, why $7,870 specifically? :)
Below I have placed arrows at each point in the market where the price of bitcoin has found support or resistance at this level. This level is the next zone for Bitcoin, we may see price turn around and retest the $8,330 level but if we cant close above this level we will see a move towards $7,870. There is a minor level between where price currently is and the $7,870 level at $8,100, if we close below that we will see price at $7,870 shortly after. I hope that helps!
I like that @stevewakeham332, yeah I agree with your levels, notice that if you combine price action with volume profile you can get a better idea of the strength of a particular level, in this case the $7,800 level seems very weak and it's unlikely the price will auction there for long, if we break below that we'll probably zip down to $7200 through the volume well:
Thank you very much! I dont normally take into consideration of levels when considering levels and the strength they hold! I definitely agree with that you've said and will 100% adding this to my future analysis, thank you!
My pleasure, thanks for your insights :)
My pleasure, I cant wait to continue to follow your blog and connect with you!
Coins mentioned in post:
Thanks for sharing this post!
Thanks for reading this post :)
Thanks for this informative post. IMHO, if Bitcoin price drops to 4500 it would be a good time to buy, but as you said, all the altcoins will take a huge hit, because all the crypto market fluctuates via Bitcoin. I am mining altcoins myself and get paid in Bitcoin, so myself personally I am waiting for it to moon, hopefully it will.
$4500 would be an absolute buyer, especially if market sentiment gets very depressed but we haven't seen that yet
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