[BITCOIN] BUY OPPORTUNITY OR MARKET SENTIMENT CHANGE ?
Preview
The last time Bitcoin made three consecutive red days was from October 9th through October 12th and it fell from 7430$ to 5856$, when the traders decided that enough is enough. Since then the cryptocurrency added over 15 000$ at its peak.
Today Bitcoin tested the 15 000$ level and bounced, but is approaching a support level
at 14 500$, which at this point is very important to hold. The chart of BTC shows us extreme weakness. You can see that the bars are thick red.
Could we have predicted weakness in the currency ?
I personally think yes ! A pretty good sign was the relatively low volume on December 12th and the next day we can see a very bearish close. At that time if I remember correctly the argument was that people are taking gains from BTC and investing into some alt coins, which is very reasonable in my opinion.
Today we might say that there is profit taking everywhere - major cryptocurrencies and alt coins. As you can see from the chart below, the Market Cap did not change during the last few days, because people were not cashing out from their positions, rather taking profits in order to buy other coins. Today the market cap is 50B less , currently at 595B.
Conclusion
- I think that the right play in this situation is to wait and see if the support level at 14,500$ will hold.
- I also think that market sentiment is not changing and this is just a usual profit taking at this point
- IF BTC breaks the 14,500$ level this might trigger some stop-orders, so if you are a buyer at 12-13 000, you should definitely have some orders.
- Also I would watch very closely where the money goes - in other crypto or cashing out in general
- If the Overall Market Cap drops below 560B you should be pretty careful with buying in my opinion
You are giving good informations, advice and suggestions, that are really useful one.
What about your contest? [Bet you 200 STEEM! The Challenge, Day 3 and 4), closed?
This is part of the contest, friend. I just dont dont add the days. The contest is live ! Should I write day 3, Day 4 ? Thanks for asking
Okay bro, that's good!
It dropped to 13.500 now. Is your advice to still hold BTC?
If I had BTC, I would have sold 3 days ago. The article was about whether to buy or not. At these levels I am definitely waiting. I want to see if there is some power in the market. Also everybody is cashing out, market cap fell 150B for 24h, which is serious.
hmm i take my change and still hold it.. Lets hope it goes up again then :)