Bitcoin Course - Analysis. Who's Still Buying It?

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In the past two weeks Bitcoin has gained a lot of popularity, sending it over 10 000$. Because of this movement, Bitcoin has gained a lot of popularity and so on...

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As long as there is demand, there is buying

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Growth of Bitcoin in recent days looks like a mad rally (it actually is). Ordinary people, fearing they could miss investment of their life, are going into Bitcoin, too. After all, Bitcoin has evaluated itself by more than 1,000% since the beginning of this year. This is called FOMO (Fear of missing out) and Bitcoin is now in a super FOMO stage. The question is how far it can go.

Today’s analysis won’t try to predict where the price of Bitcoin will go. As long as there is a demand, it goes up. That is clear. But let’s try to read from the graph at what price it would bounce to the selling phase. When it ends … and it will … it will be good to know, when to start selling. Those, who are holding since 2014, are cool at the current prices and 1000 $ move up or down does not matter for them, but it would be pity to lose so much money when they are almost free.

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When will the return from the heights happen?

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Let’s assume the growth will meet with resistance. Now, it is pointless whether the rate will be 11400 USD or higher. Once, the resistance will be somewhere. Then it will fall to 61% of the previous growth, where it can stop and bounce again. It will depend on demand, how big effort to turn will be there.

I personally believe that the original channel will create a buying area and the line marked as the selling line will be a support. If it is broken I would perceive it as a signal to sell. But beware, there shouldn't be a big sell-out which would broke this line, because for that situation that line is very far away and it could create a false signal to sell (and then the reflection will happen).

That’s why I still advise to hold and maybe just sell a little bit. Purchase will be possible in the buying zone, but if the market slowly gets below this zone, then start selling. Upon coming back from the heights, some shopping traps can be expected.

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Sentiment in the market, stock exchanges and interests

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The sentiment gradually decreases from the optimistic long to a neutral on the OKEX. Both positions are represented in the same volume.

On Bitfinex – 26:12 for long
Dollars can be borrowed in average at over 0.089%, which is a steady state. The lack of short caused the interests from Bitcoin lending to fall to 0.0226% (from 0.04%)

Recommendation: Hold and sell just a little. If a decrease happens, you can buy in the buying zone, but when the selling line is overstepped, sell.

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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.

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This is an article from btctip.cz which was translated with the permission of Karel. Česká verze k mání zde.