BITCOIN'S IMMATURE RALLY RETREATS AFTER HITTING ALMOST $3000.00 USD AGAIN! DOUBLE TOP?
PUMP & DUMP!
The other day I wrote a post and expressed my bearish bias in it but I turned out to be wrong and the price broke out in an upward direction surprising me and perhaps others as well. Although I have to say that the bounce and breakout was immature and hasty. It was more than 50% gain in a matter of week . Whenever I see price actions like this, I know that there are big traders involved who are participating in a pump and dump case scenario, where they will pump the price so they can sell or dump their assets once the price reaches a certain level.
DOUBLE TOP?
We can see in the chart above that the dump of bitcoin assets has occurred at the all time high around $3000.00 USD. Price has very quickly retreated from there and is now heading down again. I would ideally expect the price to come down and hit the spot where my red and green lines meet if the bullish trend is going to continue but I'm usually very skeptic of a continuous bullish move when I see a pump and dump like this. Looking at the chart from another perspective as you can see below confirms an even more bearish case for Bitcoin. We can see a potential double top while beautifully touching the last broken bullish trend line from the other side.
MR. OPINIONATED!
Please be advised that trading cryptocurrencies comes with a high risk and any opinions, research or other information contained in my posts is provided as a general market commentary and opinion only, and does not in any shape or form constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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I can't say I agree with you on this, but great post regardless. I don't believe we are seeing a "pump and dump". We're seeing the same resistance near $3000 we saw the first time. At this point, bitcoin is still extremely undervalued with only 21 million total coins with the number going into circulation dwindling. By the time all coins are in circulation, I believe bitcoin to be valued at at least $15000. Thanks for sharing! What are your thoughts for valuation by the time all coins are in circulation?
It's okay to disagree mate. I could be wrong. At the end of the day it's all speculation. My thoughts are that there are so many other alternatives out there; some of which are better than bitcoin, so I expect bitcoin to enter into a bear market...
If there weren't disagreements, then what would conversations even be like? I love to see other perspectives. You're right about it all being speculation in the end anyway. I love your content.
Hi @msg768, great content and upvoted like always. I've a question to an experienced cryptotrader like you. I made a top 5 of my favourite cryptoinvestment for the coming period. Would you agree with some of them? Here is my crypto top 5 if you are interested.
Thanks but I wouldn't consider myself experienced at all. I'll have a look :]
Why do you expect the price to go down? @msg768
Fundamentally speaking, I expect the price to go down because with all the other cryptocurrencies in the market, some of which are better, bitcoin is extremely overvalued in my opinion...
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