In my previous and somewhat overly dramatic post I saw Bitcoin tumble down and through from $5100. If anything, I hope you closed your buys back then.
It seems that for the time being the low of $4945,54 is holding. But we’re not out of the woods yet. The mini flash-crash may have scared a few newbies away, but I’m sure there will be an even stronger downward move in the near future.
Why do I think that? Well for starters, everyone’s way too confident about Bitcoin going to the moon. This is a good indicator that something’s brewing.
Google’s searches for Bitcoin have increased recently and it too is a good indicator to look out for. It shows that the mainstream investor is getting more confident. And who doesn’t love dumping it all on the new guy?
Here, I’ll show you my new setup.
This is a Daily with 1H candles. When I look at it I see that we’ve bounced back really good. And to be honest I kind of pulled that $4500 out of my ass in the other post anyway.
Still, with MACD crossing down on the 6 Months Daily and Relative Strength Index showing overbought conditions throughout the various time frames, I can’t help but wonder when the next little crash is going to happen.
Looks like $5218,15 resistance held and is now acting as support towards $5256,14. Also I have no idea why I am even bothering with such precision. Bitcoin is known to jump $1k in half an hour…
In the short term we are bound to test $5121-$5156 again. And if broken, $4895 is definitely not out of the question.
On the other hand if $5121-$5156 holds it may pave the way towards $5416 and higher. In the long term I can see $8k a very real option, but it’s way more likely that we will revisit the higher end of 4k once more before that happens.
There’s actually a really interesting Fibonacci support around $4300 to look out for as well (on the longer time frames). We might just go and try to test it within a few months.
Anyway, In my mind anything below $5k is a good entry point towards $8k and higher.
This post was written by ynef