Trading bitcoinfor the bulls price has to hold $8000 a week
Bitcoin hit the mainstream news throughout last year. I along with many others missed out on this meteoric rise. Little did I know that the party had barely begun.
A stunning end to the Bitcoin story of Anyone who is anyone in the world of financial markets has been expressing their opinion on this new phenomenon. Looking at the charts, it is entirely possible that the bad ending has already started.
This could not be sustained and the sellers quickly took advantage, erasing almost all the gains in half the time this week. Note how the purple day moving average, in the daily chart above, worked so perfectly as support since the November low. It is significant therefore that we broke below this average this morning to test the This is an important level this week for other reasons as we can see in the shorter-term chart below.
See how the price has been trading in a gently upward-sloping channel since the December correction, indicated by the pink trendlines. The more important trend channel is the gently downward-sloping one, which started in the second week trading bitcoinfor the bulls price has to hold $8000 a week December, indicated by the two purple trendlines. Obviously this level will be important and is imprinted in the minds of Bitcoin traders and investors.
Referring back to the daily chart above you will see that the purple day moving average worked perfectly as a support level when tested on this correction last month. Now that we have traded below this moving average already a negative signalwe can no longer rely on this support. We may initially get a knee-jerk reaction from this level but I do not see it as a strong enough area to buy into longs.
If this happens I will re-examine the price action at that time. Bulls have been unable to gain control of this market despite a good attempt at trading bitcoinfor the bulls price has to hold $8000 a week start of this week. However, we still have the risk of a double top here.
Long traders could panic out on the way to this resistance, seeing this as their last chance before a collapse. For more information, trading education and offers visit InterTrader. The content of this article is the personal opinion of the author and not InterTrader. You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.
Spread betting and CFD trading carry a high level of risk to your capital and can result in losses that exceed your initial deposit. They trading bitcoinfor the bulls price has to hold $8000 a week not be suitable for everyone, so please ensure that you fully understand the risks involved.
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