You would have to be deaf, and blind not to notice the commentary on Bitcoin at the minute. With the parabolic rise of this cryptocurrency come a plethora of thoughts. Some believe BTC $50 - $100k next while others submit it may fall to $3k. As many a trader will tell you, always look to the higher timeframe to deliver an indication as to what the price of a cryptocurrency, stock, or instrument might be. I studied recent Bitcoin charts this way, and here is what I discovered. I trade BTC on daily charts and not hourly. Because of this, I look at the weekly charts for guidance. Sometimes I look to the monthly charts for more guidance.
The weekly charts show you that there may be some momentum left in Bitcoin. Appearing at the chart below, you will understand that the momentum indicator has proven strength in the trend for the last eight weeks. The indicator shows no sign of momentum dropping any time shortly. In other words, the momentum is very bullish. This (momentum) may dissipate in about three weeks, and bring about a retracement. You may have also noted that there is some resistance at the $8300 mark. I think that if Bitcoin breaks this resistance, $9000 is certainly on the cards before any future drop in price. Like so many of you, I would love owning a crystal ball telling me the future price of Bitcoin, unfortunately, this is not the case. And since it is not the case, your guess is as good as mine.
BTC Weekly Charts with Momentum and CCI Indicators Courtesy Investing.com
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