What’s up traders,
Back again with the daily bitcoin price run down.
Currently, we are still taking a breather from that huge surge up on 4/20.
Let’s get into the charts
228-229 is a key level for bitcoin. It is both the 50% fib retracement and the location of a significant previous swing high. Once that swing high which was resistance is broken, it becomes a level of support. It is likely that this level will produce a bounce and present a good buying opportunity should price reach down here.
Price action has been choppy and a bit confusing at times for the past week or so. Currently bitcoin is in the consolidation phase in the expansion/contraction flow of the markets we outlined in previous articles. We know that range expansion follows range contraction or consolidation so we need to be on the look out for a big move soon. As for what direction bitcoin is headed, that is a good question:
242 is a very significant level as is 228, so bitcoin is sandwiched in between two key levels. Price will have to contend with these two levels and make a decision as to where it is going to go for a longer term trend. The battle fought in between this range is going to set the stage for a longer term move in price.
As it stands, bitcoin is ranging, and it is best not to force any moves. One solution to fight boredom in the market and become a better trader is to expose yourself to more markets. When bitcoin is flat, I like to trade other markets that are providing trading opportunities every day. This leads to more experience in the markets faster and more improvement.
You should check out “This Site Here” that opens up access to the FX, commodities, and stock markets to you with an account you can fund through bitcoin. It will result in you getting more market experience, and not overtrading bitcoin in a sideway market. Also, it’s a hedge to spread your bitcoins throughout a couple exchanges in case one were to get “hacked”.
Anyway, that’s all I got for the bitcoin market. It’s a bit choppy and a bit uncertain as we are in the middle of 2 very key levels. We will need to see a bit more price action to determine which way this is headed, but definitely keep an eye on 228 as a potential low risk buy with profit targets at 242 or vice versa for bears who are looking to short.
Until next time,
Good luck n good trading