Bitcoin: Bulls and Bears Battle It Out

Bulls are hoping for a bottom, bears are looking to slash prices. What will happen next with Bitcoin?

I've been watching crypto price action for quite some time now. A lot of people are saying that this is the boring part of its cycle, but I couldn't disagree more. We are at a point in the market where a big move is coming, we just need to decide which direction that will be.

What to watch out for

Price

If Bitcoin can't hold at $6k, the next price support would be at $5k then $3k. We have been hovering above $6k for a few months now, so it is likely that we will retest these levels again, assuming there isn't a breakout to the upside coming.

Moving Averages

During the bear market of '14 we saw Bitcoin's price cross below it's 100 and 2oo week moving averages. We have to assume that the same occurrence is very likely in this market. We are attempting to test the 200 week moving average soon. Let's see how it holds.

RSI

Bitcoin's RSI has been hovering just above 40 since march. We have not seen an oversold condition. In my opinion we must see an oversold condition in order to clearly call a bottom in this market.

My Strategy

Simply put, my strategy is patience. I am not buying or selling at these levels, but simply waiting. Going sideways for such a long period of time normally results in a big move, up or down. My strategy is to wait for that big move and have the capital available to buy.

Thanks for stopping by! Until next time.

 Disclaimer:
The information in this article is meant only as educational content, expressed opinion, and not investment advice. Investing your money in openly traded companies is risky and can result in the loss of principle. Investing in commodities is more risky than trading company stock as commodities are open to more risk since they are traded on the global market. This means that the ETFs of the underlying commodities (GLD and SLV) are at risk to having big movements in price while the US markets are closed. Cryptocurrency carry a great amount of risk as well. Only invest what you can afford to lose, and always do your own research. 

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