"It was at 1000$ a year ago, why would I even consider it" - That sentence came from a true Bitcoin HODLER. I think when you have been holding a bag of bitcoin from 50$ all the way up to 20,000$ your relationship with the KING Of Crypto is very personal, it's like a child that has evolved in fron of your eyes. I have massive respect for true holders, the believers, the pioners - Kudos ! To the charts...
To be honest I didn't expect to see BTC drop over 8% today, at one point we broke Friday's low (7930$). In my last post about bitcoin I spoke about the "white line", which is the 200 Simple Moving Average (A very important indicator for traders/investors). It is essential for Bitcoin to stay over that line, as this is an indicator watched by many and could cause a mini "flash crash".
It's very obvious that the downtrend in Bitcoin (Cryptocurrencies in general) continues and to be honest we might accelerate the downfall once we break the 200 SMA.
What's Next ?
- If we don't break the 200 SMA, I expect BTC to range in 7900$-9500$
- If we break 200SMA, I expect to see a sharp sell-off to around the 6000$ mark'
- For a bullish case we need a bit of consolidation at these level and then HIGH volume
Keep In Mind
There is a big event coming for crypto this week, there is a SEC/CFTC Hearing 100% on Cryptocurrencies on the 6th of February. A rather important event for crypto enthusiasts and traders. I would expect volatility, the Segwit2x cancellation volatility. The best scenario is BTC to dive below 6k in a flash crash manner and then to reclaim 200 SMA on high volume. If I see this, I am a bull right away.
