The uncertainty this past week concerning cryptocurrency prices has been beyond the call of duty. Seventeen days ago, I posited in my blog entitled, “Bitcoin – Bearish Sentiment Confirmed?” that the Bitcoin price could drop to as low as $3435. As I write, the price is $3300. Mind you, I am not jumping up and down with joy that I got it right.
A friend of mine – a big Elliot Wave advocate - asked me earlier today where I thought the next price point would be. I took a quick look at my charts and then switched over to the Bitcoin weekly chart. In this chart, the 200-weekly moving average is included with the Commodity Channel Index (CCI), and the Relative Strength Index (RSI).
One can immediately see that the current price is close to touching the 200-weekly moving average line. The 200-weekly moving average is at $3121 meaning that Bitcoin may hit that price point next. Please note that the keyword here is “may”. And even if it does, the price may bounce back up to a higher. The reason for that bounce is in the gradual decrease in strength exhibited in the CCI. I am no Elliot wave fan nor do I use the indicator but my friend tells me we are at Wave 3. He tells there will be a bounce to Wave 4 and then another massive drop to Wave 5. I will leave fans of the Elliot Wave to figure that out.
I strongly believe this uncertainty will continue into next year before there is any semblance of calm in the market. And who knows maybe there will be some good news giving the market some serious positive cheer, but then again, your guess is as good as mine.
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