This is, as always, my view and not financial advice....
Here's the three reasons why you shouldn't be piling back in big into Bitcoin and Alts just yet..
- one day of recovery DOES NOT signify a confirmation of a reversal trend from a technical standpoint. This seems to happen every Saturday recently...most probably related to point three.
- who pumped the price before? It was mostly retail investors due to hype and FOMO. Those folks will NOT come back without a significant reversal in news and people like CNBC starting to get bullish again. You might be a crypto nerd like me, but the people who pumped the price listen to the mainstream media....NOT US! And the mainstream media is mostly against us now...and this won't change quickly.
- no one publishes news on a saturday.... Among publicists it's know as "take out the trash day", the day when any announcements get the lowest audience levels as people are out living. FUD is the price's biggest enemy, and anyone holding news that may affect the market would not publish it on a Saturday. Monday morning is a much better day for getting maximum coverage.
In my view one of two things will happen depending on the news:
- We will hang around these levels for a few months
- We will retrace to the support level of around $5k...
Lets hope I'm wrong!