Bitcoin......Where next??

Ive been studying Bitcoin for a while now and through I might share some ideas on here with people who may be interested in the world of Cryptocurrencies/digital currencies and the . blockchain technology. As we all know we have seen some tremendous hype throughout the Crypto world since Bitcoin began its incredible bull run after breaching the $1000 mark in January of 2017.

Below I have a chart which I have highlighted some key areas which we can focus on, my aim here is too keep things extremely simple and not over complicated.

(Chart provided by www.tradingview.com)

So firstly before I delve into whats happening on this chart and what some of the key areas plotted mean, I must explain what appears to be happening at this moment in time in the Crypto world and why there appears to be so much contrasting information coming out.

As the people who are familiar with Crypto currencies may already know towards the end of 2017, we saw a lot of hype & excitement being generated from the major Bitcoin bull run. This mainly occurred right after it had it its all time highs peaking at around the $19,905 region, this would become to be known as the Buyers dismay as they began to feel all the panicking buying at the highs was only going to be met by sharp pull back as Bitcoin began too lose its value and start declining.

Its important at these time to remember the psychology of these markets and who the main players of this game really are, there are still many investors and even small institutions who are holding portfolios which are 50% down and some even lower (dependant on where they bought of course). Bitcoin for now remains the mother of the Crypto world and it is the soul indicator of where this market is going to go and where it will take the world.

This is not too say that it will be this way forever, as there are money Altcoins created which are for more favourable due to there transaction speeds , scalability and decentralisation. However This will be a topic for another time.

Ok.........so thats just a little background information on Bitcoin, I dont want to overwhelm it with a lot of information currently as I mainly want to focus on whats happening on the chart and just project my thoughts and ideas of where Bitcoin might be heading next.

Now currently I have a key resistance area as you can see on the chart which is $12,000 , which Bitcoin has reacted violently too and has failed to close above it cleanly. We then saw a follow through all the way down where Bitcoin found some support at at the $6,900 region.

The support of $6,900 is an area which I would like to talk about a little bit, I believe for now the market is still far too over-priced (Yes you heard me right!). As there are people panicking right now and contemplating wether to sell or not the big money is sitting on there hands and waiting for the right time to swoop in at a bargain.

If we look at the people who bought on the second test of the $6,900 region, they are currently sitting in profit right now and if some are lucky they even sold when price had hit $9,900. However most of the people buying at these levels are going to be new Investors/retail traders who haven't really bothered to do their homework and are just part of the common hype.

We want to mainly focus on the bigger picture and look at the main key levels which the bigger institutions are focusing on. Here I see Bitcoin (should the $12,00.00 region not be met again) going down to the September 2017 lows before we see the major bull run. The lows would consist of a price region of at least $3,500 , I believer once Bitcoin hits these lows again a lot of investors would have lost confidence and most people who are newbies to this market would have sold their holdings by then.

This now creates a perfect chance for the big institutions to accumulate as much as they can before one of the biggest bull runs the face of the earth has ever seen commences. These next 10 - 20 years could potentially create a new sect of millionaires if investors are positioned correctly in the present time.

I see Bitcoin reaching at least $32,000 possibly by the beginning of 2019 or even after the second quarter of 2019. Remember this is just and idea which I have conveyed in a simple manner at times of confusion and uncertainty there can be a lot of irrational behaviour in the markets which in turn creates volatility. As long as Investors stay focused on the key areas and utilise patience they can at least stand a chance.

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