Good afternoon and Happy Sunday!
We are once again consolidating at the same line we have been playing with for the last 6 months. The resistance at the 9550 level has been confirmed once more, and consolidation is well underway. I am expecting this to break fairly soon, as I think this consolidation period won't last as long for the following reasons (in order of importance):
All that being said, I still think we have room to fall further. I expect we will see prices fall a bit, before the accumulation continues. Once we break through the 9550 price level on strong volume (and stay above it for more than a few days) it will confirm the change in trend from downward to upward. Once that begins, along with the halving of block rewards in May of this year (which is deflationary), we may begin to see logarithmic growth in these charts again. Deflation for BTC is a good thing, as most fiat currencies depend on inflation to survive. This makes cryptos a good hedge against political and economic instability, which always occur together (but not always in the same order). I think we can agree that we are entering uncertain times in the world. Bitcoin doesn't seem so crazy these days, comparing to the political realities we live in.
Strategy
Happy Trading!
We are once again consolidating at the same line we have been playing with for the last 6 months. The resistance at the 9550 level has been confirmed once more, and consolidation is well underway. I am expecting this to break fairly soon, as I think this consolidation period won't last as long for the following reasons (in order of importance):
- We have touched upon the long-term trend-line, which was established about a year ago.
- The price has broken out of the downward channel we have been in since June 2019.
- Lower overall trading volume.
All that being said, I still think we have room to fall further. I expect we will see prices fall a bit, before the accumulation continues. Once we break through the 9550 price level on strong volume (and stay above it for more than a few days) it will confirm the change in trend from downward to upward. Once that begins, along with the halving of block rewards in May of this year (which is deflationary), we may begin to see logarithmic growth in these charts again. Deflation for BTC is a good thing, as most fiat currencies depend on inflation to survive. This makes cryptos a good hedge against political and economic instability, which always occur together (but not always in the same order). I think we can agree that we are entering uncertain times in the world. Bitcoin doesn't seem so crazy these days, comparing to the political realities we live in.
Strategy
- Accumulate after the price breaks another level and line forming begins (around 8000 level and below).
- Add a stop at 6900 level (broken long-term trend line).
- If price breaks out of 9550, let profits run. Otherwise, begin to take profits.
Happy Trading!