A few weeks ago I published this idea. This is a follow up. So far bitcoin has reached the 40,000 level, and it's fighting resistance there. The overall picture is an ominous Head and Shoulder pattern with a neckline around the key support level of 30,000. If this level holds then it could still be an attractive 30k-40k trading range, if not then the pattern will be confirmed and basically bitcoin will be doomed.
News like Elon Musk is reconsidering accepting bitcoin as a mean of payment for Tesla has fueled some hope among crypto traders, but this could as well just be a mirage to allure bag holders while Tesla will "test liquidity" in the crypto market. They are not the only holders, but Elon Musk has turned himself into an activist investor in the crypto currency market, and his popularity can influence the market. On the other hand El Salvador has adopted bitcoin as its official currency, a very questionable decision, but which may gain traction if you think that El Salvador will have to accumulate as much bitcoins as possible to make the transition from fiat money to crypto currency. This may look financially suicidal after the volatility of bitcoin and the impossibility of "printing" more bitcoins at the government will.
Bitcoin has entered a downtrend, with a very weak momentum, bearish volume with a slight buying to the upside in the 35,000-40,000 levels. My forecast here is that if 30,000 holds the crypto market may retry another leg to 60,000, and if not then this market will finish the distribution at levels that may bring it back to 10,000 again.
Trade, don't gamble. Good luck !
News like Elon Musk is reconsidering accepting bitcoin as a mean of payment for Tesla has fueled some hope among crypto traders, but this could as well just be a mirage to allure bag holders while Tesla will "test liquidity" in the crypto market. They are not the only holders, but Elon Musk has turned himself into an activist investor in the crypto currency market, and his popularity can influence the market. On the other hand El Salvador has adopted bitcoin as its official currency, a very questionable decision, but which may gain traction if you think that El Salvador will have to accumulate as much bitcoins as possible to make the transition from fiat money to crypto currency. This may look financially suicidal after the volatility of bitcoin and the impossibility of "printing" more bitcoins at the government will.
Bitcoin has entered a downtrend, with a very weak momentum, bearish volume with a slight buying to the upside in the 35,000-40,000 levels. My forecast here is that if 30,000 holds the crypto market may retry another leg to 60,000, and if not then this market will finish the distribution at levels that may bring it back to 10,000 again.
Trade, don't gamble. Good luck !
