Hi guys!
It seems like bitcoin is going to consolidate for the next few days.
Here are my thoughts on bitcoin for today.
BTC - Daily Chart
Tools used: Fib Retracement and Smoothen Moving Average
Bitcoin failed to breakthrough yesterday and closed around $7,600. And judging from the candle, bitcoin might be consolidating for the next few days.
Nevertheless, these are 2 prices to lookout for:
- $8,000 is a very important price as this was the price prior to the parabolic move/bull run around the end of November 2017. Note that it took about 2 weeks for bitcoin to breakthrough $8,000 on November 2017.
- $9,000 is the upper resistance on the massive descending triangle. This was the resistance that bitcoin failed to breakthrough and led to the last breakdown**.
BTC - Daily Chart
Tools used: Trend-Based Fib Extension
This might be the probable price area if bitcoin consolidates for the next few days. Note that the crossover of $8,000 price will happen on 14/15 February 2018.
Conclusion
As always, I would wait for the stronger confirmation while watching closely to those prices around the resistance and SMMA (200). But I doubt bitcoin might go back to $6,000 price soon.
And I won't be touching my alt bags anytime soon. Until I get a strong confirmation on the trend/reversal trend to the downside.
FYI: SMMA(200) or smoothen moving average is a great indicator to find an undervalued price on both stock and cryptocurrency chart. Found this while browsing youtube yesterday. This was the reason for the price spike from $6,000 to $9,000 in a matter of 1 hour.
Disclaimer
You know the drill guys. This is just opinion and not a financial advise. Do you own research and decide your own trades. Cheers!