Bitcoin had it's historical run to all time high levels this week, reaching a top price in the $5900s.
However the risk/benefit ratio must be calculated carefully beyond this point.
With the MACD slope decreasing and showing signs of a more beraish reversal, there is a smaller chance of Bitcoin reaching $6000 and beyond.
With almost an equal chance of it correcting in the next few days, traders have been cautious about putting more money into the market.
However, with the next hard fork coming up, many users are optimistic that they will receive the free money that they missed out on during the last hard fork.
These traders may not realize that this hard fork isn't like the last, and traders ar advised to read up on what will occur if the hard forks succeed. Especially the proposed November one.
Now to the chart, Bitcoin will most likely correct to a certain level sometime soon. Which level and how soon may determine if this bull market will continue, or if we have a much longer bear market in the future.
The worst case is the head and shoulder scenario, which we may see a decline into the $2000 range. More realistically, we'll probably just correct to sub $4000.
I've detailed the possibilities on the chart above.
However the risk/benefit ratio must be calculated carefully beyond this point.
With the MACD slope decreasing and showing signs of a more beraish reversal, there is a smaller chance of Bitcoin reaching $6000 and beyond.
With almost an equal chance of it correcting in the next few days, traders have been cautious about putting more money into the market.
However, with the next hard fork coming up, many users are optimistic that they will receive the free money that they missed out on during the last hard fork.
These traders may not realize that this hard fork isn't like the last, and traders ar advised to read up on what will occur if the hard forks succeed. Especially the proposed November one.
Now to the chart, Bitcoin will most likely correct to a certain level sometime soon. Which level and how soon may determine if this bull market will continue, or if we have a much longer bear market in the future.
The worst case is the head and shoulder scenario, which we may see a decline into the $2000 range. More realistically, we'll probably just correct to sub $4000.
I've detailed the possibilities on the chart above.
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