Hello after a long time. Today I will try to draw a chart... as always. And the question is what am I going to write about when the Bitcoin price seems not to move at all.
Let’s summarize it. In the previous months, Bitcoin has attempted to attack 6100 USD, and has always been able to get over that number. That is called support and in this view, 6100 is a very strong support. On the other hand, it is even impossible not to notice the resistance which is somewhere around 6825 USD. This resistance is formed gradually and although there were several breakthroughs, the price always returned below it.
Support and resistance are already given in the long run
Something tells me that support is made up of old hodlers, while resistance is created by those who leave the BTC market or need to sell for other reasons (for example miners). These are basically new traders who have set 6825 USD as the highest price for which it does make sense to sell.
Whether we stay above 6100 USD depends on which of these two camps will eventually be stronger. If there is some pressure on sales, buyers will retreat, accepting a cheaper price, some even may start panic selling. If there is a breakthrough, then the sellers can retreat and start selling higher. However, as the maximal price is constantly decreasing, it seems that there would be the ongoing pressure on sales, which ultimately results in going under 6100. You can speculate on that, but set a stoploss somewhere around 6900 USD.
Is bitcoin overpriced?
My personal opinion is that BTC is still overpriced. The ideal purchase price is somewhere in 3000 – 4000 USD. Let’s see if my opinion corresponds to the opinion of the majority. Bitcoin, at a price above 6900 USD, does not really have much to offer. Positive news are missing, and falling altcoins do not help much, too.
And that may be the main reason why Bitcoin stays so high. In the case of the fall of alts, Bitcoin is a temporary shelter for traders who otherwise hold alts. The end of the fall of altcoins may indicate a signal for BTC sales.
Recommendation: If 6100 is broken, then I recommend selling, but be aware that at that time almost everybody will sell. So it is possible to speculate and have sold already now and possibly to buy at a break over 6900 USD.
Disclaimer: These articles cannot be considered as an investment advice, and it is still a good idea to make speculation on bitcoin stock exchanges only with funds you can afford to lose. The high-profit potential is balanced with a significant risk of losing, especially here on the crypto markets.
Česky: https://btctip.cz/kurz-btc-analyza-je-bitcoin-predrazeny/