So bitcoin and many of the other cryptocurrencies that found themselves in downtrends the past month or so (I'd call it consolidation but let's not get picky about terminology just yet). After a brief retest of the old 1800 USD level of support on Sunday (image above), we've seen quite a rally (50% or so). Whether this is driven by short covering or speculative buying of the dips (or a little of both) I can't say. I will say I'm kicking myself for not loading the boat Sunday and I now expect a retest of the big 3,000 pretty soon at the rate we're going. I'm not here to analyze current events and effects on price, merely using simple charting technique (support and resistance levels) to try and predict what the price might do and where a decent entry might be for a short term trade or longer term hold even.
In the second chart I've condensed the view to 1 month and you can see I've labelled the 3 major levels of support / resistance at 2750 and 2640 which will be key to price action today. XBT already dropped below 2750 as this was a large, fast move and If XBT falls below 2640, we can probably expect a retest of lower levels of support. I'd love a chance to enter around 2275 area (shown as bottom line in green in chart above) but let's not get our hopes up as this appears to be a pretty strong move up. It could retest the 3,000 level as early as next week but I expect a bit of consolidation / retracement of this move up over the weekend as people take profits from recent entries.
When I have a little more time I'd like to get into other basic charting / technical analysis terminology and explore some of the other popular currencies, price action, and what it could mean going forward.
I'm not a professional trader, just an engineer who loves trading stocks, options, and whatever else I find fluctuates a lot. I've fallen in love with the crypto currency market as it's a new frontier and it has wild price swings like penny stocks and options do and it also has potential to make one rich if you hold a currency long enough.
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Happy trading / investing or whatever it is you do! Time to go to work....