China is the rotten egg in the bunch! Current MC: $143.59B (-$1.77B) Bitcoin Dominance 47.4%
Over the past day there has been more buzz about the rumors coming from China. The Wall Street Journal and even Forbes both put out articles about Bitcoin in relation to the Chinese Exchanges. In my opinion this is just another ploy to manipulate the markets for their own benefit. China has done it before and they will do it again!
Will China end up with egg on it's face? Or will they be walking on eggshells for a while after the ICO ban and possible closure/restriction of exchanges. Either way this is only a temporary phase but it might create a market reversal sending us back into bear territory. The next month may present some very good buying opportunities, especially in the alt-coin markets since any change in BTC price significantly affects alt-coins.
(Sorry I just love that little bear's face)
In today's chart you will see yet another sell off which tested the support levels in the low $4,000 range. Previous support levels at $4050 held up and pushed us back above $4100. Stochastics indicate that we are OVERSOLD and due for a push back up. Bollinger Bands also indicate that we are below the moving average (just above $4250). High volatility and volumes could push us back down to the low $4,000 zone again upon any news coming from China today. We might even dip below that solid $4K support level if some large stop loss orders are triggered to sell. Now is definitely a good time to pick up coins that have consolidated and found their bottom range.
Likely Scenarios:
- BTC takes another hit upon more rumors and panic selling dropping us below $4,000 but stopping around $3850-3950
- Support levels hold us between $4050 and 4250
- Retracement back to the $4250-4350 comfort zone
TLDR Version:
Cheap coins are everywhere today as the market cowers in fear. Prices have held steady in the $4K zone throughout all of these FUD events but expect that support level to break down if there is any REAL news coming out of China. Prices will hold between $4150-4250 for part of the day, retracement back to $4350+ possible if the rumors dispel.
Price Target:
$4250
Alt-coins To Watch:
- OMG
- ETH
- LTC
- ARK
- ZEC
- NEO
*Never invest more than you are willing to lose and always do your own research before making any investment decisions.
(All pictures are free domain images from snappygoat.com or created by myself.)