It would not be Bitcoin, if it was not full of reversals. And growth. And growth to infinity and beyond. What if the Bitcoin will grow infinitely? Hmm, probably not, although the deflation potential this currency has. The thing that causes the price is rather a demand than some technical parameter. Damn the forks, damn the fees. The interesting information is that on Coinbase there are 100,000 new users every day. That is an incredible number of people interested in Bitcoin. Then do not be surprised that Bitcoin price is above 7000 USD.
Fundamental is above analysis
By the way, the past analysis (due to technical problems it was not published on Steemit) did not go as I expected, you have probably noticed this. However, at least I was pleased that I was not alone. In the vortex of the cruel market even big players had massive losses. For example on the futures OKEX exchange the short position of a trader, who had been (till that day) at the leading positions in the TOP traders ranking (Those, whose decisions we watch), was liquidated. Overall, he lost about 48,000,000 USD. The market does not cuddle with anyone.
In these situations, we can throw all technical analysis into the toilet. Fundament is set… for now. Okay, but seven thousand dollars …? Some will definitely come to withdraw profits, the question is, if it is enough to satisfy the demand.
Does it make sense to look at the graph?
Despite the big interest, the price of Bitcoin is still in a particular channel… and despite the fact, that the attack on the 7000 looked strong-minded, eventually it stopped at the top of the channel and started to fall in Saturday afternoon. Consequently, the profits withdrawing will not overpass us, so we can prepare to the price decrease, gentle decrease, maybe a move to the side. Maybe we will take a look under 6800 USD for a short time.
Sooner or later, profits will be withdrawn
Just before the fork (if it happen), one more great growth could happen, endangering the 8000 USD. The buyers will probably be those, who believe that the Bitcoin course will grow infinitely. After the fork (if any) more massive profits withdrawing could happen, but so far I do not believe that the bottom line of the channel could be broken. The possibility of some kind of shopping fever, which could cause the break through the top line and then… (hard to say), is here, too.
To speculate on growth is risky and to speculate on fall is risky, too. So I rather recommend holding, and maybe selling just a little bit. Choose a price, and then express your gain of your portfolio from this price. Then sell the part of Bitcoins that equals a half of that gain. Repeat this after every significant increase.
After a bigger price fall, buy as much as half of what your portfolio has lost since the last trade. This strategy will give us in case of increase some of the money now and also an opportunity to buy in case of fall, so if the price will be increasing infinitely, you have a guaranteed infinite profit. :)
Sentiment on the market, exchanges and interests
OKEX now has no clear mood. The big shorters probably fell off, so OKEX is balanced, by volume longs are leading (adepts for liquidation?).
On Bitfinex – more shorts – 18:25 (long:short).
If you plan to make money on funding, you can lend your dollars for about 0.1% (decrease from 0.11% last week).
Bitcoin can be lent for 0.021% (also a decrease from 0.035%)
Recommendation: Hold and gradually sell.
Disclaimer: These articles cannot be considered as investment advice, and it is still a good idea to make speculation on bitcoin stock exchanges only with funds you can afford to lose. High profit potential is balanced with a significant risk of losing, especially here on the crypto markets.
This is an article from btctip.cz which was translated with the permission of Karel. Česká verze k mání zde.
