If support at 35K holds we may have another rally.
Technicals
Weekly Time Frame
The weekly tells a story of a correcting downtrend leg that meets the support with the main trend. The downtrend leg is not over yet, it has developed a negative momentum and a sale off. This is the point where the Whales step in and stop it from going below the 35K level. If there is enough support from the bulls and a short correction or an accumulation happen, then we can ignite a new uptrend leg. This "Fake head" we just saw is part of the support/resistance testing.
Daily Time Frame
In the daily timeframe, the story is similar, the downtrend leg resistance level wasn't breached, we can see from the Madrid Ribbons that the maximum closing level is still below the main downtrend. There is some green, but not the light green we're looking for to open a buying position and ride an uptrend in this trading time frame. The 35k-40K level has to be tested. If there is enough support we can expect the price to be bouncing here until the ribbons get stretched and a new trend is ignited.
The future of digital currency
The digital tokens are still a developing story. We're in a digital world that has been evolving since the internet boom in the late 90's. Digital currencies are the future of economic transactions, and what we're witnessing now is the start of the digital currency. Just like what happened during the e-commerce start, there were a bunch of internet companies who emerged, not all of them were strong enough, some of them were just a fancy internet related name and a desk that didn't have a strong infrastructure and eventually they disappeared along with the capital initially invested. Some others were able to thrive and survived to become what we see now as the main digital corporations like Amazon, Google, Apple, etc. We could expect the same story to be unraveled here, a digital revolution with the electronic currency that has turned this into a big speculative market where a lot of participant want to be the first to jump into the future. This created a frenzy that triggered a bubbling market. We have to keep this in mind. It happened in the past and it may happen again. People who entered too early may struggle for a while until this settles and we'll see which coins will be strong enough and which will become worthless.
Bitcoin and the digital currency ecosystem.
Bitcoin for a while was the only main digital coin, and it is true that when the last bitcoin will be mined that'll be all the available supply. At that point the market may think that "the sky is the limit" for its valuation. However, if Bitcoin was the only available token the story would be pretty mucha that but this is not the only kid on the block, Ethereum, is the second best from the market cap point of view, and this ecosystem has created a humongous amount of new tokens with better implementations of the blockchain code, and just like the e-bubble, a bunch of entities are being created, a bubble is inflated and not all of them will survive. Unquestionably this is a big revolution for the future of transactions, but we're still in the Wild West of digital currencies, and it's still a long way to go.
Trade, don't gamble, and if you gamble, make sure to honor your stops.
Technicals
Weekly Time Frame
The weekly tells a story of a correcting downtrend leg that meets the support with the main trend. The downtrend leg is not over yet, it has developed a negative momentum and a sale off. This is the point where the Whales step in and stop it from going below the 35K level. If there is enough support from the bulls and a short correction or an accumulation happen, then we can ignite a new uptrend leg. This "Fake head" we just saw is part of the support/resistance testing.
Daily Time Frame
In the daily timeframe, the story is similar, the downtrend leg resistance level wasn't breached, we can see from the Madrid Ribbons that the maximum closing level is still below the main downtrend. There is some green, but not the light green we're looking for to open a buying position and ride an uptrend in this trading time frame. The 35k-40K level has to be tested. If there is enough support we can expect the price to be bouncing here until the ribbons get stretched and a new trend is ignited.
The future of digital currency
The digital tokens are still a developing story. We're in a digital world that has been evolving since the internet boom in the late 90's. Digital currencies are the future of economic transactions, and what we're witnessing now is the start of the digital currency. Just like what happened during the e-commerce start, there were a bunch of internet companies who emerged, not all of them were strong enough, some of them were just a fancy internet related name and a desk that didn't have a strong infrastructure and eventually they disappeared along with the capital initially invested. Some others were able to thrive and survived to become what we see now as the main digital corporations like Amazon, Google, Apple, etc. We could expect the same story to be unraveled here, a digital revolution with the electronic currency that has turned this into a big speculative market where a lot of participant want to be the first to jump into the future. This created a frenzy that triggered a bubbling market. We have to keep this in mind. It happened in the past and it may happen again. People who entered too early may struggle for a while until this settles and we'll see which coins will be strong enough and which will become worthless.
Bitcoin and the digital currency ecosystem.
Bitcoin for a while was the only main digital coin, and it is true that when the last bitcoin will be mined that'll be all the available supply. At that point the market may think that "the sky is the limit" for its valuation. However, if Bitcoin was the only available token the story would be pretty mucha that but this is not the only kid on the block, Ethereum, is the second best from the market cap point of view, and this ecosystem has created a humongous amount of new tokens with better implementations of the blockchain code, and just like the e-bubble, a bunch of entities are being created, a bubble is inflated and not all of them will survive. Unquestionably this is a big revolution for the future of transactions, but we're still in the Wild West of digital currencies, and it's still a long way to go.
Trade, don't gamble, and if you gamble, make sure to honor your stops.