What is the real value of Bitcoin from your point of view? Is it above 8000.00 level? Is it below 8000.00 level? Please, share your ideas in the comments.
Why do I ask you such a question? The main reason is to show you the possible difference between the real value and the current price. How it will be, we will know in your comments.
The situation, when there is a difference between the real value and the current price, can give us understanding in which direction the market will move. Also, the difference between these two values can lead us to a new bubble, the price which is not supported by fundamental factors. In order to understand my idea, please, look at 2017 year, when we got a typical bubble probably after the breakout above 5000.00 level. The market was supported only by hype and by the uneducated crowd of traders pushing the market higher and higher to 20 000 level. The real value at that time was lower than the current price. The fundamental factors did not support the market and it dropped a lot in some time. That falling was an attempt to move back to the real value which was based on fundamental factors and included all news about the market. And the level like 3000.00 could become the zone where the real value of Bitcoin at that moment and the current price met each other.
All bubbles lead to great fallings. And not always it can be good for the market. What I can see now, it looks like we have a new attempt to create a new bubble, where the real value of Bitcoin will be lower than the current price supported by the uneducated crowd of traders, manipulators, and new hype.
That's why it will be interesting to get your opinion about the real value of Bitcoin to understand better, how far we are from creating a new bubble. Let's discuss!
As for Technical Analysis based on the weekly chart, we have a strong uptrend where the market continues the impulse wave. The main question stays the same - when does the market start the correction? Now it is a good time for making mistakes and opening long positions without waiting for the correction movement. But also nobody wants to miss the opportunity to make some profit.
RSI reached the overbought zone. If the price bounces from 8000.00 resistance, RSI will be able to provide a good signal confirming the possible price reversal. MACD lines and histogram support the further upward movement and DMI confirms the strength of buyers. As you can see, we still have bullish signals confirming the upward movement in spite of the market which looks overbought.
Will the price bounce from 8000.00 or it will be able to reach 10 000.00 before the correction? We will see and for better understanding, we need to wait for the close price of this weekly candle. If we get a reversal candlestick pattern, the variant with the correction will be supported by one more bearish signal. If not, the market becomes crazier and we should not be surprised if it continues the upward movement to 10 000 level.
But will it be good for the market and all the participants? It is a very interesting question for discussion.
P.S. Thank you very much for your attention. If you like this post, please support it by clicking the LIKE button. Also, I will be grateful for your feedback.
Why do I ask you such a question? The main reason is to show you the possible difference between the real value and the current price. How it will be, we will know in your comments.
The situation, when there is a difference between the real value and the current price, can give us understanding in which direction the market will move. Also, the difference between these two values can lead us to a new bubble, the price which is not supported by fundamental factors. In order to understand my idea, please, look at 2017 year, when we got a typical bubble probably after the breakout above 5000.00 level. The market was supported only by hype and by the uneducated crowd of traders pushing the market higher and higher to 20 000 level. The real value at that time was lower than the current price. The fundamental factors did not support the market and it dropped a lot in some time. That falling was an attempt to move back to the real value which was based on fundamental factors and included all news about the market. And the level like 3000.00 could become the zone where the real value of Bitcoin at that moment and the current price met each other.
All bubbles lead to great fallings. And not always it can be good for the market. What I can see now, it looks like we have a new attempt to create a new bubble, where the real value of Bitcoin will be lower than the current price supported by the uneducated crowd of traders, manipulators, and new hype.
That's why it will be interesting to get your opinion about the real value of Bitcoin to understand better, how far we are from creating a new bubble. Let's discuss!
As for Technical Analysis based on the weekly chart, we have a strong uptrend where the market continues the impulse wave. The main question stays the same - when does the market start the correction? Now it is a good time for making mistakes and opening long positions without waiting for the correction movement. But also nobody wants to miss the opportunity to make some profit.
RSI reached the overbought zone. If the price bounces from 8000.00 resistance, RSI will be able to provide a good signal confirming the possible price reversal. MACD lines and histogram support the further upward movement and DMI confirms the strength of buyers. As you can see, we still have bullish signals confirming the upward movement in spite of the market which looks overbought.
Will the price bounce from 8000.00 or it will be able to reach 10 000.00 before the correction? We will see and for better understanding, we need to wait for the close price of this weekly candle. If we get a reversal candlestick pattern, the variant with the correction will be supported by one more bearish signal. If not, the market becomes crazier and we should not be surprised if it continues the upward movement to 10 000 level.
But will it be good for the market and all the participants? It is a very interesting question for discussion.
P.S. Thank you very much for your attention. If you like this post, please support it by clicking the LIKE button. Also, I will be grateful for your feedback.
💰COPY MY TRADES FOR FREE! Join 👉 bit.ly/41DKDBD
📣 Get Welcome Bonuses for 1st Trade 👉 bit.ly/bonus_bybit
💎 Share My BEST Trades here 👉 bit.ly/wubits
📣 Get Welcome Bonuses for 1st Trade 👉 bit.ly/bonus_bybit
💎 Share My BEST Trades here 👉 bit.ly/wubits