Hello Steemit Members,
Today is a good day. We are currently sitting above $10,000. A great price to be sitting above! Anyone who followed my recommendation last week to buy at $9,500 would be in the gain right now. Yet again, we've made the right decision. Now, where will we go from here? Honestly, I believe we have a great chance to go to new highs, but it's too early to predict that. We'll be retesting the red downtrend line soon. That is when our major decision needs to be made. Before getting into that, If you had bought at $9,500, a good stop loss would be $9800 or below. A break below this would surely bring the price back to $9,000. Now, if you are sitting on the side lines. Right now is not a good time to buy. The risk is high. We need to wait for more confirmation that the price will keep increasing. A good indication that Bitcoin will go to new highs is when it breaks the red downtrend line. This level currently sits at $10,650 today. A break above the red downtrend line and a successful retest of this line will likely bring in a lot of buyers. With this volume confirmation, it would be a really good sign for Bitcoin. This is great area to buy. Now, that doesn't mean we'll be going to new highs, but it does mean we can reduce our risk a lot when the chance comes to break out of the $12.5k resistance. The goal here is to get above $12.5k and stay above $12.5k. Bitcoin sitting above $10k today makes it seem like it'll give it a shot. However, a fail to do so would confirm the market is not bullish and a big drop could happen. This is why we want to buy early. To reduce our risk for such an event. Once it breaks above the red downtrend line, a good stop loss would be just below it for the time being. As I pointed out last week, a possible head and shoulders pattern could play out for a chance to retest the $20k high. This would take a lot of buying power to do so. A lot of volume needs to come in to confirm this head and shoulders pattern is being respected. A break above $12.5k, and the success to stay above would be a good time to take out our beers. Bitcoin will have broken out of its bear trend, an accomplishment that should be celebrated.
THE BAD
As good as all this sounds, there is a bad side to this. As stated earlier, a break below $9,800 will likely bring us to $9,000. A minor support. A break below $9k would bring us to a level we do not want to go below $8.4k. We have to stay above this otherwise it might bring people to panic sell. A retest of 6k would come into play, and a chance for 5k and even 3k can happen. This scenario as of right now is just as likely as Bitcoin going back to 20k. This is why we need to wait for more indication price will continue its uptrend. A fail to break above the red downtrend line would be a good time to take some profit. It would confirm that the bear trend has not yet ended.
All follows, comments, votes, and resteems are appreciated greatly.
Thank you!
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