Bitcoin Trading - June 15, 2017 - Rebound?
Bitcoin may have just rebounded! The hardest part of trading is trying to pick tops or bottoms. It's pretty much impossible. Just looking at today's chart might give one the feeling that a bottom has been found and Bitcoin is rebounding from yesterday's dip.
The bears have had control pretty much since the wee hours of the morning yesterday. This sell off comes on the heels of Bitmain's blog post and renewed fears over a possible chain split August 1st. It seems people are working out the game theory and realizing that UASF BIP 148 is going to be successful, and that Bitmain is bluffing. If they were to Hard Fork, they would be creating, mining, and controlling an Altcoin. Since their business is built around mining Bitcoin, they WILL NOT fork to an altcoin. It would bankrupt them in short order.
That said, Bitcoin seems to have picked up support at just a little under $2100. It was just a few short weeks ago when $2100 was the new all time high! This would be as good a place as any for Bitcoin to make a reversal. Traders got a discount yesterday, so hopefully everybody got to pick up some cheap Bitcoin.
What's so significant about $2040 price level? Why did Bitcoin dip to $2040? Well, remember our Fibonacci Retracement Tool from the other day? $2040 just happens to be right on the .886 Retracement level! The cryptocurrency markets often return to .618, .786, or .886 after a bull run. 786 is the most common, but sometimes the market over sells and hits the .886. It's not out of the realm of normal market activity.... especially with the panic selling going on.
For those who HODLED and picked up some discounted coins... congratulations. The RSI was oversold and the MACD was way low, so you got an excellent deal, I do believe. Both indicators have since turned toward the upside, and you are most likely already in profit.
The next stop is $2500, for a quick visit. I fully expect to see a little more resistance at $2669 again. Then it will be a quick jump back to the $2700- 2800s to resume the trend. Some YouTube traders are looking for a 1- 4 week pull back, but I'm not so sure that's going to happen. It could, but there is still so much demand for Bitcoin, I just don't see it falling for that long. Buckle up, it's always a wild ride with cryptos! As always, keep your stops tight and trade safely.
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